Document ID: chunk:federal_register_of_legislation:C2010C00605:clause:1_3:p1
Version: federal_register_of_legislation:C2010C00605
Segment Type: clause
Provision Reference: sch 1 cl 3 (pt 1/10)
Character Range: 8978–11825

3  Before Division 717
Insert:

Division 716—Miscellaneous special rules

Table of Subdivisions

716‑A Assessable income and deductions spread over several membership or non‑membership periods
716‑Z Other

Subdivision 716‑A—Assessable income and deductions spread over several membership or non‑membership periods

Guide to Subdivision 716‑A

716‑1  What this Division is about

      Some items of assessable income, and some deductions, are in effect spread over 2 or more income years. This Division apportions the assessable income or deduction for each of those income years among periods within the income year when an entity is, or is not, a subsidiary member of a consolidated group.
      This Division also apportions in a similar way some items of assessable income, and some deductions, for a single income year.

Table of sections

Operative provisions

716‑15 Assessable income spread over 2 or more income years
716‑25 Deductions spread over 2 or more income years
716‑70 Capital expenditure that is fully deductible in one income year

Assessable income and deductions arising from share of net income of a partnership or trust, or from share of partnership loss

716‑75 Application
716‑80 Head company's assessable income and deductions
716‑85 Entity's assessable income and deductions for a non‑membership period
716‑90 Entity's share of assessable income or deductions of partnership or trust
716‑95 Special rule if not all partnership or trust's assessable income or deductions taken into account in working out amount
716‑100 Spreading period

 [This is the end of the Guide.]

Operative provisions

716‑15  Assessable income spread over 2 or more income years

 (1) This section applies if, apart from this Part, a provision of this Act would spread an amount (the original amount) over 2 or more income years (whether or not because of a choice) by including part of the original amount in the same entity's assessable income for each of those income years.

Head company's assessable income

 (2) If:
 (a) for some but not all of an income year, an entity is a *subsidiary member of a *consolidated group; and
 (b) a part of the original amount:
 (i) would have been included in the assessable income of the *head company of the group for that income year if the entity had been a subsidiary member of the group throughout that income year; but
 (ii) would have been included in the entity's assessable income for that income year if throughout that income year the entity had not been a subsidiary member of any *consolidated group;
the head company's assessable income for that income year includes a proportion of that part.

Note 1: Examples of when paragraph (2)(b) could be satisfied are:
  *   the head company is the entity referred to in subsection (1), but its connection with the original amount passes