Document ID: chunk:federal_register_of_legislation:C2025C00029:section:4:p6
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 4 (pt 6/55)
Character Range: 3813122–3815786

paragraph 230‑20(1)(a), (b) or (c) applies.

Associated financial benefit to be taken into account only once
 (2) A *financial benefit to which this section applies is not to be (to any extent):
 (a) included in your assessable income; or
 (b) allowable as a deduction to you;
under any provision of this Act outside this Division for the same or any other income year.

Exception for certain bad debts
 (3) If:
 (a) a *financial benefit has been included in your assessable income under a provision of this Act outside this Division; and
 (b) a bad debt deduction would have been allowed under section 25‑35 in relation to the financial benefit;
subsection (2) does not prevent that bad debt deduction from being allowed under section 25‑35 in relation to the financial benefit as if the debt were still outstanding.

Section does not give rise to exempt income
 (4) A *financial benefit is not to be treated as *exempt income merely because it is not included in your assessable income under this section.

230‑30  Treatment of gains and losses related to exempt income and non‑assessable non‑exempt income
 (1) Despite section 230‑15, a gain that you make from a *financial arrangement:
 (a) to the extent that it reflects an amount that would be treated, or would reasonably expected to be treated, as *exempt income under a provision of this Act if this Division were disregarded—is exempt income; and
 (b) to the extent that it reflects an amount that would be treated or would reasonably expected to be treated, as *non‑assessable non‑exempt income under a provision of this Act if this Division were disregarded—is not assessable income and is not exempt income.
 (2) Despite section 230‑15, a gain that you make from a *financial arrangement:
 (a) to the extent that, if it had been a loss, you would have made it in gaining or producing *exempt income—is exempt income; and
 (b) to the extent to which, if it had been a loss, you would have made it in gaining or producing *non‑assessable non‑exempt income—is not assessable income and is not exempt income.
 (3) A loss you make from a *financial arrangement is not allowable as a deduction to you under any provision of this Act (other than subsection 230‑15(3)) to the extent that you make it in gaining or producing your:
 (a) *exempt income; or
 (b) *non‑assessable non‑exempt income.

230‑35  Treatment of gains and losses of private or domestic nature

Borrowings etc. used for private or domestic purpose
 (1) Subsections (2) and (3) apply if:
 (a) a *borrowing is made by you, or credit is provided to you, under a *financial arrangement; and
 (b) you use some or all of the funds borrowed or the