Document ID: chunk:federal_register_of_legislation:C2019A00095:clause:3_3:p2
Version: federal_register_of_legislation:C2019A00095
Segment Type: clause
Provision Reference: sch 3 cl 3 (pt 2/3)
Character Range: 15452–18090

are:
 (i) leased, hired or licensed; or
 (ii) available for lease, hire or licence.
Note: If all of the structures on the land are disregarded under this subsection, then subsection (1) may deny you a deduction for a loss or outgoing relating to the land.

Exception—kind of entity
 (5) Subsection (1) does not stop you deducting a loss or outgoing if, at any time during the income year in which the loss or outgoing is incurred, you are:
 (a) a *corporate tax entity; or
 (b) a *superannuation plan that is not a *self managed superannuation fund; or
 (c) a *managed investment trust; or
 (d) a public unit trust (within the meaning of section 102P of the Income Tax Assessment Act 1936); or
 (e) a unit trust or partnership, if each *member of the trust or partnership is covered by a paragraph of this subsection at that time during the income year.

Exception—structures affected by natural disasters or other exceptional circumstances
 (6) Subsection (1) does not stop you deducting a loss or outgoing relating to holding land if:
 (a) had an earlier time been the critical time (see paragraph (1)(b)), paragraph (1)(b) would not have applied to you for the land because of the existence at that earlier time of a substantial and permanent structure on the land; and
 (b) after that earlier time, paragraph (1)(b):
 (i) began to apply to you for the land wholly or mainly because of a circumstance affecting that structure; and
 (ii) continued to do so at the critical time; and
 (c) the circumstance was exceptional and beyond the reasonable control of you, and of all the entities referred to in paragraphs (2)(b), (c) and (d); and
 (d) the critical time happened before:
 (i) the third anniversary of the time paragraph (1)(b) began to apply to you for the land as described in subparagraph (b)(i) of this subsection; or
 (ii) such later time as the Commissioner allows.
 (7) If subsection (6) applies to you and you deduct the loss or outgoing, you must keep written records of:
 (a) the circumstance; and
 (b) the circumstance's effect on the affected structure;
until the fifth anniversary of the end of the income year in which you incurred the loss or outgoing.
Note: There is an administrative penalty if you fail to keep these records (see section 288‑25 in Schedule 1 to the Taxation Administration Act 1953).

Exception—land held by primary producers
 (8) Subsection (1) does not stop you deducting a loss or outgoing relating to holding land if, at the critical time (see paragraph (1)(b)):
 (a) the land is under lease, hire or licence to another entity; and
 (b) you are, or an entity referred to in paragraph (2)(b),