Document ID: chunk:federal_register_of_legislation:C2025C00029:section:6:p6
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 6 (pt 6/16)
Character Range: 371461–374017

the same amount as interest; and
 (b) that interest were incurred in respect of the finance raised by the entity and in respect of which the return was paid or provided; and
 (c) the *debt interest retained its character as a debt interest for the purposes of subsection (2).
 (4) Subsections (2) and (3) do not apply to a *return to the extent to which it would be a *general deduction under section 8‑1 apart from this section.
 (4A) Subsections (2) and (3) do not apply to a *return on a *debt interest that is a *Division 230 financial arrangement.
 (5) Subject to regulations made for the purposes of subsection (6), subsections (2) and (3) do not apply to the return to the extent to which the annually compounded internal rate of return exceeds the *benchmark rate of return for the interest increased by 150 basis points.
 (6) The regulations may provide that subsection (5) applies in the circumstances specified in the regulations as if the reference to 150 basis points were a reference to a greater or lesser number of basis points.

25‑90  Deduction relating to foreign non‑assessable non‑exempt income
  An *Australian entity can deduct an amount of loss or outgoing from its assessable income for an income year if:
 (a) the amount is incurred by the entity in deriving income from a foreign source; and
 (b) the income is *non‑assessable non‑exempt income under section 768‑5, or section 23AI or 23AK of the Income Tax Assessment Act 1936; and
 (c) the amount is a cost in relation to a *debt interest issued by the entity that is covered by paragraph (1)(a) of the definition of debt deduction.
Note: This section does not apply to a Division 230 financial arrangement.

25‑95  Deduction for work in progress amounts
 (1) You can deduct a *work in progress amount that you pay for the income year in which you pay it to the extent that, as at the end of that income year:
 (a) a recoverable debt has arisen in respect of the completion or partial completion of the work to which the amount related; or
 (b) you reasonably expect a recoverable debt to arise in respect of the completion or partial completion of that work within the period of 12 months after the amount was paid.
 (2) You can deduct the remainder (if any) of the *work in progress amount for the following income year.
 (3) An amount is a work in progress amount to the extent that:
 (a) an entity agrees to pay the amount to another entity (the recipient); and
 (b) the amount can be identified as being in respect of work (but not goods) that has been partially performed