Document ID: chunk:federal_register_of_legislation:C2025C00014:clause:2d_2:p6
Version: federal_register_of_legislation:C2025C00014
Segment Type: clause
Provision Reference: sch 2D cl 2 (pt 6/9)
Character Range: 2186709–2189438

amount exceeds the value (as worked out according to actuarial principles) of the liabilities of that kind that have accrued as at the transition time.

57‑55  Deductions reduced under both sections 57‑40 and 57‑50
  If the amount of a deduction otherwise allowable to the transition taxpayer in respect of a contribution to a fund is required to be reduced under both sections 57‑40 and 57‑50:
 (a) if the reduction is of a different amount—the amount is reduced only under that section that requires the greater reduction; or
 (b) if the reduction is of the same amount—the amount is reduced only under section 57‑40.

Subdivision 57‑G—Denial of certain deductions

57‑60  Effect of pre‑transition time accrued leave entitlements
 (1) This section applies to a deduction otherwise allowable to the transition taxpayer for a year of income under subsection 51(1) of this Act or section 8‑1 (about general deductions) of the Income Tax Assessment Act 1997 in respect of long service leave payments or annual leave payments to a person who was an employee of the transition taxpayer at any time before or after the transition time.
Note: Subsection 51(3) of this Act or section 26‑10 of the Income Tax Assessment Act 1997 (as appropriate) contains additional requirements for certain leave payments to be deductible.

Deduction allowable only if sum of all deductions exceeds leave threshold amount
 (2) The deduction is not allowable if the sum of all deductions of the transition taxpayer to which this section applies for the year of income is less than or equal to the leave threshold amount (see subsection (4)) for the year of income.

Amount of deduction not allowable
 (3) If the sum is greater than the leave threshold amount, so much of the deduction as is worked out using the following formula is not allowable:

Meaning of leave threshold amount
 (4) The leave threshold amount for a year of income is:
 (a) if the year of income is the transition year—the (pre‑transition time service) leave amount (see subsection (5)) of the transition taxpayer; or
 (b) in any other case—that amount as reduced by the total amount of deductions to which this section applies that, because of subsection (2) or (3), have not been allowable to the transition taxpayer for all previous years of income.

Meaning of (pre‑transition time service) leave amount
 (5) The (pre‑transition time service) leave amount of the transition taxpayer is the sum of the following amounts:
 (a) the amount that would be payable by the transition taxpayer in respect of annual leave and long service leave if, at the transition time, all employees of the transition taxpayer began to take all leave of that kind that they were eligible to take; and