Document ID: chunk:federal_register_of_legislation:C2024A00138:clause:1_11:p1
Version: federal_register_of_legislation:C2024A00138
Segment Type: clause
Provision Reference: sch 1 cl 11 (pt 1/4)
Character Range: 21972–24608

11  After Division 43
Insert:

Division 44—Build to rent development misuse tax

Table of Subdivisions
 Guide to Division 44
44‑A Object of this Division
44‑B Build to rent development misuse tax
44‑C When tax is payable

Guide to Division 44

44‑1  What this Division is about
      This Division removes certain tax concessions for build to rent developments when they cease to be active build to rent developments.

Subdivision 44‑A—Object of this Division

Table of sections

Operative provisions
44‑5 Object of this Division

Operative provisions

44‑5  Object of this Division
  The object of this Division is to remove certain tax concessions for *build to rent developments when they *cease to be *active build to rent developments.

Subdivision 44‑B—Build to rent development misuse tax

Guide to Subdivision 44‑B

44‑10  What this Subdivision is about
      You are liable to pay a tax if a build to rent development you own ceases to be an active build to rent development. The tax is on an amount (called a build to rent misuse amount) related to past capital works deductions and withholding amounts (if any) for the active build to rent development.

Table of sections

Liability for tax
44‑15 Liability for tax

Build to rent misuse amounts
44‑20 Build to rent misuse amounts
44‑25 Your build to rent capital works deduction amount
44‑30 Your build to rent withholding amount

Liability for tax

44‑15  Liability for tax
  You are liable to pay *build to rent development misuse tax for an income year if you have a *build to rent misuse amount for the income year.
Note: The amount of tax is set out in the Capital Works (Build to Rent Misuse Tax) Act 2024.

Build to rent misuse amounts

44‑20  Build to rent misuse amounts
 (1) You have a build to rent misuse amount for an income year, equal to the amount worked under subsection (2), if the amount worked out under that subsection is greater than nil.
 (2) For the purposes of subsection (1), the amount is the sum of:
 (a) the amount that is the sum of your *build to rent capital works deduction amounts, worked out under section 44‑25, for each *build to rent development to which subsection (3) of this section applies for the income year (if any); and
 (b) the amount that is 10 times the sum of your *build to rent withholding amounts, worked out under section 44‑30, for each build to rent development to which subsection (3) of this section applies for the income year (if any).
 (3) For the purposes of paragraphs (2)(a) and (b), this subsection applies to a *build to rent development for an income year if:
 (a) the build to rent development *ceases to be