Document ID: chunk:federal_register_of_legislation:C2025C00029:section:6:p8
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 6 (pt 8/16)
Character Range: 376177–378742

lease or licence if the expenditure is incurred:
 (a) in the course of carrying on a *business; or
 (b) in connection with ceasing to carry on a business.
 (2) The amount you can deduct is 20% of the expenditure:
 (a) for the income year in which the lease or licence is terminated; and
 (b) for each of the next 4 income years.

Exceptions
 (3) You cannot deduct any amount for expenditure you incur to terminate a lease that, in accordance with *accounting standards, or statements of accounting concepts made by the Australian Accounting Standards Board, is classified as a finance lease.
 (4) If you incurred the expenditure under an *arrangement and:
 (a) there is at least one other party to the arrangement with whom you did not deal at *arm's length; and
 (b) apart from this subsection, the amount of the expenditure would be more than the *market value of what it was for (assuming the termination did not occur and was never proposed to occur);
the amount of expenditure you take into account is that market value.
 (5) You cannot deduct any amount for expenditure you incur to terminate a lease or licence if:
 (a) after the termination, you or an *associate of yours enters into another lease or licence with the same party or an associate of that party; and
 (b) the other lease or licence is of the same kind as the original one.
 (6) You cannot deduct any amount for expenditure you incur to terminate a lease or licence to the extent that the expenditure is for the granting or receipt of another lease or licence in relation to the asset that was the subject of the original lease or licence.

25‑115  Deduction for payment of rent from land investment by operating entity to asset entity in relation to approved economic infrastructure facility
 (1) An entity that is an *operating entity in relation to a *cross staple arrangement can deduct an amount, for an income year, of *rent from land investment if:
 (a) another entity derives or receives the amount from the operating entity:
 (i) in the income year; and
 (ii) on or after 27 March 2018; and
 (b) the cross staple arrangement was entered into in relation to:
 (i) a facility that is covered by section 12‑439 in Schedule 1 to the Taxation Administration Act 1953 at a time in the income year; or
 (ii) an improvement to a facility that is covered by that section at a time in the income year; and
 (c) the other entity is an *asset entity in relation to the cross staple arrangement; and
 (d) apart from this subsection, the operating entity could otherwise deduct the amount under this