Document ID: chunk:federal_register_of_legislation:C2010C00685:clause:3_1:p1
Version: federal_register_of_legislation:C2010C00685
Segment Type: clause
Provision Reference: sch 3 cl 1 (pt 1/9)
Character Range: 65137–68099

1  After Division 387
Insert:

[The next Division is Division 396]

Division 396—Land transport facilities borrowings

Table of Subdivisions

Guide to Division 396
396‑A Key operative provisions
396‑B What LTF interest is covered?
396‑C Projects, borrowers and lenders
396‑D Application, approval and agreement process
396‑E Miscellaneous

Guide to Division 396

396‑5  What this Division is about

      A lender can get a tax offset for certain interest it derives on an approved borrowing by another entity for the construction of land transport facilities.
      For a borrowing to be approved:

                (a) the borrower must apply to the Commissioner; and
                (b) the Minister for Transport and Regional Development must approve the application; and
                (c) that Minister, the borrower and each of the lenders must enter into an agreement.

      The total of tax offsets available under this Division for an income year is subject to a limit.
      Where a tax offset is given for interest, the borrower cannot deduct the interest.

Subdivision 396‑A—Key operative provisions

Guide to Subdivision 396‑A

396‑10  What this Subdivision is about

      This Subdivision provides for:

                (a) the tax offset for the lender; and
                (b) deductions not to be allowed to the borrower.
      It also provides for a cap to be set on the amount of tax offsets approved for each income year.

Table of sections

Operative provisions

396‑15 Tax offset for LTF interest on land transport facilities borrowings
396‑20 Maximum amount of tax offsets
396‑25 Borrower cannot deduct LTF interest for which lender has tax offset

[This is the end of the Guide.]

Operative provisions

396‑15  Tax offset for LTF interest on land transport facilities borrowings

 (1) An entity that is a lender under a *land transport facilities borrowings agreement is entitled to a *tax offset for *LTF interest covered by the agreement.

Amount of tax offset

 (2) The amount of the tax offset is worked out using the formula:

  However, the amount cannot exceed any amount specified in the *land transport facilities borrowings agreement as the maximum *tax offset for that lender for the income year for that agreement.

 (3) In subsection (2):

LTF interest covered by agreement means the amount of *LTF interest that is covered by the *land transport facilities borrowings agreement and that is derived by the entity in the income year.

396‑20  Maximum cost to Commonwealth

  The maximum net cost to the Commonwealth of *tax offsets to be approved under this Division for an income year (after taking into account deductions that are reduced) is the amount determined, by written notice, by the Treasurer.

Note: The maximum amount is taken into account under subsection 396‑70(5) in approving projects.

396‑25  Borrower cannot deduct LTF interest for which lender has tax offset

 (1) The total of amounts