Document ID: chunk:federal_register_of_legislation:C2025C00014:clause:2d_19:p2
Version: federal_register_of_legislation:C2025C00014
Segment Type: clause
Provision Reference: sch 2D cl 19 (pt 2/2)
Character Range: 2199825–2201823

deductions for the year.
Note: This means that the transition taxpayer can have no excess deductions remaining from years of income before the transition year.

Subdivision 57‑K—Balancing adjustments

57‑110  Apportionment of balancing adjustments
 (1) If, apart from this subsection, a balancing adjustment provision (see subsection (2)) would:
 (a) require an amount to be included in the transition taxpayer's assessable income for the transition year or a later year of income in respect of particular expenditure; or
 (b) allow an amount as a deduction from the transition taxpayer's assessable income for the transition year or a later year of income in respect of particular expenditure;
then only so much of the amount as is worked out using the following formula is so included or allowable:

where:
actual deductions is the sum of all deductions actually allowed or allowable to the transition taxpayer for the expenditure under the deduction rule to which the balancing adjustment provision relates (see subsection (2)).
notional deductions is the sum of all deductions for the expenditure that would have been allowable to the transition taxpayer under the deduction rule to which the balancing adjustment provision relates, if the transition taxpayer had never been wholly exempt from income tax.
 (2) Each balancing adjustment provision and its related deduction rule are shown in an item of the table. Provisions of the Income Tax Assessment Act 1997 are shown in ordinary text, and provisions of the Income Tax Assessment Act 1936 are shown in bold.

Balancing adjustment provisions and related deduction rules
                                                                                                                                                                                               Balancing adjustment provision                Deduction rule to which the balancing adjustment provision relates

Item                                                         Topic