Document ID: chunk:federal_register_of_legislation:C2025C00029:section:3:p7
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 3 (pt 7/53)
Character Range: 2931669–2934457

year deductions) are attributed to periods as if each period were an income year.
 (4) *Full year deductions are not attributed to any of the periods. They are brought in at a later stage of the process of calculating the company's taxable income for the income year.
 (5) These are full year deductions:
 (a) deductions for bad debts under section 8‑1 (about general deductions) or section 25‑35 (about bad debts);
 (b) deductions for losses on debt/equity swaps under section 63E of the Income Tax Assessment Act 1936;
 (c) deductions, so far as they are allowable under Division 8 (which is about deductions) because Subdivision H (Period of deductibility of certain advance expenditure) of Division 3 of Part III of the Income Tax Assessment Act 1936 applies to the company in relation to the income year;
 (fa) deductions for payments of pensions, gratuities or retiring allowances under section 25‑50;
 (fb) deductions for gifts under Division 30;
 (f) deductions for *tax losses of earlier income years.
See Division 36.
 (6) However, a deduction for the balance of capital expenditure is not a full year deduction if the deduction results from the disposal, loss, lapse, termination of use or destruction of the property.

165‑60  How to attribute assessable income to periods
 (1) The company's assessable income for the income year is attributed to periods in the income year as follows.
 (2) The following amounts are attributed to periods so far as they are reasonably attributable to those periods:
 (a) amounts included in the company's assessable income under section 97 (Beneficiary of a trust estate who is not under a legal disability) of the Income Tax Assessment Act 1936; or
 (b) amounts included in the company's assessable income under section 98A (Non‑resident beneficiaries assessable in respect of certain income) of the Income Tax Assessment Act 1936.
 (2A) However, so much of an amount included in the company's assessable income under section 97 or 98A of the Income Tax Assessment Act 1936 as is a *capital gain that forms part of a *net capital gain is not attributed to a period.
 (3) The following items of assessable income are attributed to each period in proportion to the length of the period:
 (a) insurance recoveries for loss of *live stock or trees;
See section 385‑130.
 (b) amounts included in assessable income as a result of elections relating to the forced disposal of live stock;
See Subdivision 385‑E and section 385‑160.
 (c) recoupment of mains electricity connection expenditure.
See items 1.16 and 2.5 in section 20‑30, which lists deductions for which recoupments are assessable under Subdivision 20‑A.
 (4) An amount included in the company's assessable income under section 385‑135 (Election to defer including profit on second wool