Document ID: chunk:federal_register_of_legislation:C2025C00014:section:159gn:p2
Version: federal_register_of_legislation:C2025C00014
Segment Type: section
Provision Reference: s 159GN (pt 2/3)
Character Range: 1403048–1405717

reference to the amount that, but for this subparagraph, would be the total notional principal, as increased by the amount of any deduction allowable under subparagraph (i) of this paragraph in relation to the eligible amount in respect of the application period; and
 (iii) for the purposes of the application of section 159GK, any eligible amount in relation to the item of property in respect of the application period shall be ascertained in accordance with the formula AB, where:
  A  is the amount that, but for this section, would be the eligible amount; and
  B  is the non‑assessable person fraction in relation to the application of this Division concerned.
 (2) For the purposes of subsection (1):
 (a) a reference in that subsection to the assessable person fraction in relation to an application of this Division in relation to an item of eligible property is a reference to the interest of all of the assessable persons in the income referred to in paragraph (1)(c) expressed as a fraction of the interests of all of the persons entitled to that income; and
 (b) a reference in that subsection to the non‑assessable person fraction in relation to an application of this Division in relation to an item of eligible property is a reference to the fraction ascertained by subtracting the assessable person fraction in relation to that application of this Division in relation to the item of eligible property from the number 1.
 (3) Where:
 (a) this Division applies in relation to an item of eligible property by reason of the application of subparagraph 159GH(1)(b)(ii) in relation to the use of the item of property outside Australia partly for the purpose of producing exempt income; and
 (b) that use is also partly for the purpose of producing assessable income;
the following provisions have effect:
 (c) there is allowable to a taxpayer so much of any deduction that, but for this section, would not, by reason of the application of section 159GJ, be allowable to the taxpayer in relation to any eligible amount in relation to the item of eligible property in respect of the application period as is ascertained in accordance with the formula AB, where:
  A  is the amount of the deduction that, but for this section would not, by reason of the application of section 159GJ, be allowable to the taxpayer; and
  B  is the assessable income fraction for the purposes of the application of this Division concerned;
 (d) for the purposes of section 159GJ, a reference in that section to the total notional principal in relation to an eligible amount in relation to the item of eligible property in respect of the application period shall be taken to be a