Document ID: chunk:federal_register_of_legislation:C2025C00029:section:4:p39
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 4 (pt 39/55)
Character Range: 3893690–3896400

debt, a right to receive a *financial benefit; and
 (b) the right is one that you bought in the ordinary course of your *business of lending money.
 (5) The balancing adjustment to be made under paragraph (1)(b), to the extent that it relates to the writing off of the bad debt, must not exceed the value of the *financial benefit you provided to acquire the right to the financial benefit (or the part of the financial benefit).
 (6) For the purposes of this Act, a deduction for the balancing adjustment referred to in subsection (3) is to be treated as a deduction of a bad debt.
Note: Various provisions in this Act and the Income Tax Assessment Act 1936 restrict the availability of deductions for bad debts and make provision in relation to the recoupment of amounts in relation to bad debts that have been written off. These provisions are set out in subsection 25‑35(5).

230‑200  Re‑estimation if balancing adjustment on partial disposal

Re‑estimation if balancing adjustment on partial disposal
 (1) You also re‑estimate a gain or loss from a *financial arrangement under subsection (2) if:
 (a) the accruals method applies to the gain or loss; and
 (b) a balancing adjustment is made in relation to the arrangement under Subdivision 230‑G because you transfer to another entity:
 (i) a proportionate share of all of your rights and/or obligations under the arrangement; or
 (ii) a right or obligation that you have under the arrangement to a specifically identified *financial benefit; or
 (iii) a proportionate share of a right or obligation that you have under the arrangement to a specifically identified financial benefit.
You must re‑estimate the gain or loss as soon as reasonably practicable after the transfer occurs.

Nature of re‑estimation
 (2) Making a re‑estimation in relation to a gain or loss under this subsection involves:
 (a) a fresh determination of the amount of the gain or loss disregarding:
 (i) *financial benefits; and
 (ii) amounts of the gain or loss that have already been allocated to intervals ending before the re‑estimation is made;
  to the extent to which they are reasonably attributable to the proportionate share, or the right or obligation, referred to in paragraph (1)(b); and
 (b) a reapplication of the accruals method to the redetermined gain or loss to make a fresh allocation of the part of that gain or loss that has not already been allocated to intervals ending before the re‑estimation is made to intervals ending after the re‑estimation is made.

Basis for re‑estimation
 (3) You make the fresh allocation of the gain or loss under subsection (2) by maintaining the rate of return being used and adjusting the amount to which you apply the rate of