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INCOME TAX ASSESSMENT ACT 1936

PART I - PRELIMINARY  

SECTION 6  INTERPRETATION  

 View history reference

6(1AA)  

 View history reference
So far as a provision of the Income Tax Assessment Act 1936 gives an expression a particular meaning, the provision does not also have effect for the purposes of the Income Tax Assessment Act 1997 (the 1997 Act), or for the purposes of Schedule 1 to the Taxation Administration Act 1953, except as provided in the 1997 Act or in that Schedule.

6(1)  

 View history reference ITAA 97
In this Act, unless the contrary intention appears:

100% subsidiary has the same meaning as in the Income Tax Assessment Act 1997.

accrued leave transfer payment (Repealed by No 56 of 2010)

adjusted fringe benefits total , of a taxpayer for a year of income, has the meaning given by clause 4 of Schedule 3 to the A New Tax System (Family Assistance) Act 1999.

adjusted taxable income for rebates means adjusted taxable income (within the meaning of the A New Tax System (Family Assistance) Act 1999, disregarding clauses 3 and 3A of Schedule 3 to that Act).

AFOF means an Australian venture capital fund of funds within the meaning of subsection 118-410(3) of the Income Tax Assessment Act 1997.

agent : this Act applies to some entities (within the meaning of the Income Tax Assessment Act 1997) that are not agents in the same way as it applies to agents: see section 960-105 of the Income Tax Assessment Act 1997.

Agriculture Secretary (Repealed by No 110 of 2014)

allowable deduction has the same meaning as deduction has in the Income Tax Assessment Act 1997.

AMIT (short for attribution managed investment trust) has the same meaning as in the Income Tax Assessment Act 1997.

amount paid-up on a share means the amount (if any), including any premium, paid on that share.

amount unpaid on a share means the amount (if any) unpaid on that share.

apportionable deductions has the meaning given by subsection 995-1(1) of the Income Tax Assessment Act 1997.

approved form has the meaning given by section 388-50 in Schedule 1 to the Taxation Administration Act 1953.

approved stock exchange has the same meaning as in the Income Tax Assessment Act 1997.

Arts Department (Repealed by No 110 of 2014)

Arts Minister (Repealed by No 110 of 2014)

Arts Secretary (Repealed by No 110 of 2014)

assessable income has the meaning given by subsection 995-1(1) of the Income Tax Assessment Act 1997.

assessment means:


(a) the ascertainment:


(i) of the amount of taxable income (or that there is no taxable income); and

(ii) of the tax payable on that taxable income (or that no tax is payable); and

(iii) of the total of a taxpayer's tax offset refunds for a year of income (or that the taxpayer can get no such refunds for the year of income); or

Note 1:

A taxpayer does not have a taxable income if the taxpayer's deductions equal or exceed the taxpayer's assessable income: see subsection 4-15(1) of the Income Tax Assessment Act 1997.

Note 2:

A taxpayer may have no tax payable on an amount of taxable income if that income is below the tax-free threshold or if the taxpayer's tax offsets reduce the taxpayer's basic income tax liability to nil.


(b) (Repealed by No 53 of 2016)


(c) for a taxpayer that is the trustee of a unit trust that is a public trading trust (within the meaning of section 102R) - the ascertainment:


(i) of the net income of the trust (within the meaning of section 102M) (or that there is no net income); and

(ii) of the tax payable on that net income (or that no tax is payable); and

(iii) of the total of a taxpayer's tax offset refunds for a year of income (or that the taxpayer can get no such refunds for the year of income); or


(d) for a taxpayer that is the trustee of a trust estate (other than a trustee to which paragraph (b) or (c) applies or the trustee of a complying superannuation fund, a non-complying superannuation fund, a complying approved deposit fund, a non-complying approved deposit fund or a pooled superannuation trust) - the ascertainment:


(i) of so much of the net income of the trust estate as is net income in respect of which the trustee is liable to pay tax (or that there is no net income in respect of which the trustee is so liable); and

(ii) of the tax payable on that net income (or that no tax is payable); and

(iii) of the total of a taxpayer's tax offset refunds for a year of income (or that the taxpayer can get no such refunds for the year of income); or


(e) the ascertainment of the amount of interest payable under section 102AAM (about distributions from non-resident trust estates); or


(f) (Repealed by No 15 of 2017)


(g) the ascertainment of an amount of tax under section 159GZZZZH; or


(h) the ascertainment of the amount of income tax payable on the no-TFN contributions income as defined by section 295-610 of the Income Tax Assessment Act 1997 (or that no tax is payable); or


(i) (Repealed by No 70 of 2015)


(j) the ascertainment of the amount payable (or that no amount is payable) under the following:


(i) subsection 276-105(2) of the Income Tax Assessment Act 1997 (AMIT trustee taxed on amounts attributed to foreign resident members);

(ii) subsection 276-340(2) of that Act (AMIT trustee taxed on trust component deficit of character relating to tax offset);

(iii) subsection 276-405(2) of that Act (AMIT trustee taxed on shortfall in determined member components of character relating to assessable income);

(iv) subsection 276-410(2) of that Act (AMIT trustee taxed on excess in determined member components of character relating to tax offset);

(v) subsection 276-415(2) of that Act (AMIT trustee taxed on amounts of determined trust component that are not reflected in member components);

(vi) subsection 276-420(2) of that Act (AMIT trustee taxed on amounts of under of character relating to assessable income not properly carried forward);

(vii) subsection 276-425(2) of that Act (AMIT trustee taxed on amounts of over of character relating to tax offset not properly carried forward); or


(k) the ascertainment of the amount payable under subsection 177P(1) (diverted profits tax).

attribution managed investment trust : see AMIT.

Australia has the same meaning as in the Income Tax Assessment Act 1997.

Australian superannuation fund has the meaning given by subsection 995-1(1) of the Income Tax Assessment Act 1997.

bank or banker includes, but is not limited to, a body corporate that is an ADI (authorised deposit-taking institution) for the purposes of the Banking Act 1959.

base interest rate has the meaning given by subsection 995-1(1) of the Income Tax Assessment Act 1997.

basic income tax liability has the meaning given by section 4-10 of the Income Tax Assessment Act 1997.

Board of Referees (Repealed by No 216 of 1973)

business has the meaning given by subsection 995-1(1) of the Income Tax Assessment Act 1997.

capital gain has the same meaning as in the Income Tax Assessment Act 1997.

capital loss has the same meaning as in the Income Tax Assessment Act 1997.

capital proceeds has the same meaning as in the Income Tax Assessment Act 1997.

CGT asset has the same meaning as in the Income Tax Assessment Act 1997.

CGT event has the same meaning as in the Income Tax Assessment Act 1997.

Chief Executive Centrelink has the same meaning as in the Human Services (Centrelink) Act 1997.

child has the meaning given by subsection 995-1(1) of the Income Tax Assessment Act 1997.

Commissioner means the Commissioner of Taxation.

Commonwealth education or training payment has the meaning given by subsection 995-1(1) of the Income Tax Assessment Act 1997.

Commonwealth securities means bonds, debentures, stock or other securities issued under an Act, but does not include:


(a) securities (not being securities to which paragraph (b) applies) issued in respect of a loan raised outside Australia unless there is in force a declaration by the Minister, published in the Gazette, that those securities shall be Commonwealth securities for the purposes of this Act; or


(b) securities issued after 12 April 1976 by a bank.

company has the meaning given by subsection 995-1(1) of the Income Tax Assessment Act 1997.

complying approved deposit fund has the meaning given by subsection 995-1(1) of the Income Tax Assessment Act 1997.

complying superannuation fund has the meaning given by subsection 995-1(1) of the Income Tax Assessment Act 1997.

"concessional deductions" (Repealed by No 107 of 1989)

consolidated group has the same meaning as in the Income Tax Assessment Act 1997.

constituent document , in relation to a company, means the memorandum and articles of association of the company, or any rules or other document constituting the company or governing its activities.

corporate limited partnership has the meaning given by section 94D.

corporate tax entity has the same meaning as in the Income Tax Assessment Act 1997.

corporate tax rate has the same meaning as in the Income Tax Assessment Act 1997.

cost base of a CGT asset has the same meaning as in the Income Tax Assessment Act 1997.

creditable acquisition has the meaning given by section 195-1 of the GST Act.

"daughter" (Repealed by No 135 of 1990)

debenture , in relation to a company, includes debenture stock, bonds, notes and any other securities of the company, whether constituting a charge on the assets of the company or not.

debt interest has the same meaning as in the Income Tax Assessment Act 1997.

deductible gift recipient has the meaning given by the Income Tax Assessment Act 1997.

Defence Department (Repealed by No 145 of 2010)

Defence Minister (Repealed by No 145 of 2010)

Defence Secretary (Repealed by No 145 of 2010)

demerged entity has the meaning given by section 125-70 of the Income Tax Assessment Act 1997.

demerger has the meaning given by section 125-70 of the Income Tax Assessment Act 1997.

demerger allocation means:


(a) the total market value of the allocation represented by the ownership interests issued by the demerged entity in itself under a demerger to the owners of ownership interests in the head entity of the demerger group; or


(b) the total market value of the allocation represented by the ownership interests disposed of by a member of a demerger group under a demerger to the owners of ownership interests in the head entity; or


(c) the total of both of those market values.

demerger dividend means that part of a demerger allocation that is assessable as a dividend under subsection 44(1) or that would be so assessable apart from subsections 44(3) and (4).

demerger group has the meaning given by section 125-65 of the Income Tax Assessment Act 1997.

demerger subsidiary has the meaning given by section 125-65 of the Income Tax Assessment Act 1997.

demerging entity has the meaning given by section 125-70 of the Income Tax Assessment Act 1997.

depreciating asset has the same meaning as in the Income Tax Assessment Act 1997.

Deputy Commissioner means a Deputy Commissioner of Taxation.

distribution , when used in a franking context, has the same meaning as in the Income Tax Assessment Act 1997.

diverted profits tax has the meaning given by the Income Tax Assessment Act 1997.

dividend includes:


(a) any distribution made by a company to any of its shareholders, whether in money or other property; and


(b) any amount credited by a company to any of its shareholders as shareholders;


(c) (Repealed by No 63 of 1998)

but does not include:


(d) moneys paid or credited by a company to a shareholder or any other property distributed by a company to shareholders (not being moneys or other property to which this paragraph, by reason of subsection (4), does not apply or moneys paid or credited, or property distributed for the redemption or cancellation of a redeemable preference share), where the amount of the moneys paid or credited, or the amount of the value of the property, is debited against an amount standing to the credit of the share capital account of the company; or


(e) moneys paid or credited, or property distributed, by a company for the redemption or cancellation of a redeemable preference share if:


(i) the company gives the holder of the share a notice when it redeems or cancels the share; and

(ii) the notice specifies the amount paid-up on the share immediately before the cancellation or redemption; and

(iii) the amount is debited to the company's share capital account;
except to the extent that the amount of those moneys or the value of that property, as the case may be, is greater than the amount specified in the notice as the amount paid-up on the share; or


(f) a reversionary bonus on a life assurance policy.

Note:

Subsection (4) sets out when paragraph (d) of this definition does not apply.

dividend (withholding) tax (Repealed by No 85 of 1967)

Division 230 financial arrangement has the same meaning as in the Income Tax Assessment Act 1997.

dual resident investment company has the meaning given by section 6F.

dwelling has the meaning given by the Income Tax Assessment Act 1997.

Education Department (Repealed by No 110 of 2014)

Education Secretary (Repealed by No 15 of 2017)

eligible taxable income has the meaning given by section 102AD.

Employment Department (Repealed by No 41 of 2011)

Employment Minister (Repealed by No 41 of 2011)

Employment Secretary has the meaning given by the Income Tax Assessment Act 1997.

employment termination payment has the same meaning as in the Income Tax Assessment Act 1997.

equity holder has the same meaning as in the Income Tax Assessment Act 1997.

equity interest has the same meaning as in the Income Tax Assessment Act 1997.

ESVCLP means an early stage venture capital limited partnership within the meaning of subsection 118-407(4) of the Income Tax Assessment Act 1997.

exempt entity has the same meaning as in the Income Tax Assessment Act 1997.

exempt income has the meaning given by section 6-20 of the Income Tax Assessment Act 1997.

exploration credit has the same meaning as in the Income Tax Assessment Act 1997.

[CCH Note: Definition of "exploration credit" will be repealed by No 21 of 2015, s 3 and Sch 6 item 38(a), effective 1 July 2020. For savings provisions, see note under s 177C(3).]

exploration development incentive tax offset means a tax offset under Subdivision 418-B of the Income Tax Assessment Act 1997.

[CCH Note: Definition of "exploration development incentive tax offset" will be repealed by No 21 of 2015, s 3 and Sch 6 item 38(b), effective 1 July 2020. For savings provisions, see note under s 177C(3).]

Families Secretary has the meaning given by the Income Tax Assessment Act 1997.

family tier 1 threshold has the meaning given by the A New Tax System (Medicare Levy Surcharge - Fringe Benefits) Act 1999.

[CCH Note: Definition of "family tier 1 threshold" will be repealed by No 11 of 2014, s 3 and Sch 3 item 3, effective 1 July 2019.]

farm management deposit has the meaning given by the Income Tax Assessment Act 1997.

FHSA (Repealed by No 70 of 2015)

FHSA trust (Repealed by No 70 of 2015)

FMD provider has the meaning given by the Income Tax Assessment Act 1997.

foreign superannuation fund has the meaning given by subsection 995-1(1) of the Income Tax Assessment Act 1997.

foreign tax has the meaning given by section 6AB.

frankable distribution has the same meaning as in the Income Tax Assessment Act 1997.

franked part of a distribution has the same meaning as in the Income Tax Assessment Act 1997.

franking credit has the same meaning as in the Income Tax Assessment Act 1997.

franking debit has the same meaning as in the Income Tax Assessment Act 1997.

franking deficit tax has the same meaning as in the Income Tax Assessment Act 1997.

franking surplus has the same meaning as in the Income Tax Assessment Act 1997.

franks with an exempting credit has the same meaning as in the Income Tax Assessment Act 1997.

friendly society has the meaning given by subsection 995-1(1) of the Income Tax Assessment Act 1997.

friendly society dispensary has the meaning given by subsection 995-1(1) of the Income Tax Assessment Act 1997.

fringe benefit has the meaning given by subsection 995-1(1) of the Income Tax Assessment Act 1997.

full self-assessment taxpayer , for a year of income (the current year), means any of the following:


(a) a company;


(b) (Repealed by No 53 of 2016)


(c) the trustee of a trust that is a public trading trust in relation to the current year for the purposes of Division 6C of Part III;


(d) the trustee of a complying approved deposit fund or a non-complying approved deposit fund in relation to the current year;


(e) the trustee of a complying superannuation fund or a non-complying superannuation fund in relation to the current year;


(f) the trustee of a pooled superannuation trust in relation to the current year.


(g) (Repealed by No 70 of 2015)

Note:

A corporate limited partnership is taken to be a company under section 94J, so it will fall within paragraph (a) of this definition.

fund payment has the same meaning as in the Income Tax Assessment Act 1997.

general insurance company has the same meaning as in the Income Tax Assessment Act 1997.

general insurance policy has the same meaning as in the Income Tax Assessment Act 1997.

general interest charge means the charge worked out under Part IIA of the Taxation Administration Act 1953.

general partner has the meaning given by subsection 995-1(1) of the Income Tax Assessment Act 1997.

GST Act means the A New Tax System (Goods and Services Tax) Act 1999.

head company of a consolidated group or a MEC group has the same meaning as in the Income Tax Assessment Act 1997.

head entity of a demerger group has the meaning given by section 125-65 of the Income Tax Assessment Act 1997.

Health Department (Repealed by No 110 of 2014)

Health Minister has the meaning given by the Income Tax Assessment Act 1997.

Health Secretary (Repealed by No 110 of 2014)

hold , in relation to an RSA, has the same meaning as in the Retirement Savings Accounts Act 1997.

holder , in relation to an RSA, has the same meaning as in the Retirement Savings Accounts Act 1997.

Housing Secretary (Repealed by No 110 of 2014)

Immigration Department (Repealed by No 110 of 2014)

Immigration Minister (Repealed by No 110 of 2014)

Immigration Secretary (Repealed by No 110 of 2014)

income from personal exertion or income derived from personal exertion means income consisting of earnings, salaries, wages, commissions, fees, bonuses, pensions, superannuation allowances, retiring allowances and retiring gratuities, allowances and gratuities received in the capacity of employee or in relation to any services rendered, the proceeds of any business carried on by the taxpayer either alone or as a partner with any other person, any amount received as a bounty or subsidy in carrying on a business, any amount that is included in the assessable income of the taxpayer by reason of section 393-10 of the Income Tax Assessment Act 1997, the income from any property where that income forms part of the emoluments of any office or employment of profit held by the taxpayer, and any profit arising from the sale by the taxpayer of any property acquired by the taxpayer for the purpose of profit-making by sale or from the carrying on or carrying out of any profit-making undertaking or scheme, but does not include:


(a) interest, unless the taxpayer's principal business consists of the lending of money, or unless the interest is received in respect of a debt due to the taxpayer for goods supplied or services rendered by the taxpayer in the course of the taxpayer's business; or


(b) rents, dividends or non-share dividends.

income from property or income derived from property means all income not being income from personal exertion.

income tax means income tax imposed as such by any Act, as assessed under this Act, but, except in section 260, does not include mining withholding tax or withholding tax.

income tax or tax (Repealed by No 110 of 2014)

Indigenous land has the same meaning as in the Income Tax Assessment Act 1997.

Indigenous person has the same meaning as in the Income Tax Assessment Act 1997.

insurance business has the same meaning as in the Insurance Act 1973.

insurance funds , in relation to a company, means all the Australian statutory funds of the company and all other funds maintained by the company in respect of the life assurance business of the company.

interest income , in relation to a taxpayer, means income consisting of interest, or a payment in the nature of interest, in respect of:


(a) money lent, advanced or deposited; or


(b) credit given; or


(c) any other form of debt or liability;

whether security is given or not, other than:


(d) an amount to the extent to which it is a return on an equity interest in a company; or


(e) interest derived by the taxpayer from a transaction directly related to the active conduct of a trade or business; or


(f) interest derived by the taxpayer from carrying on a banking business or any other business whose income is principally derived from the lending of money; or


(g) interest received by the taxpayer during a year of income from a foreign company, where:


(i) at any time during the year of income, the taxpayer had (or would have had, if the taxpayer were a company and a resident), a voting interest, within the meaning of section 334A, amounting to at least 10% of the voting power, within the meaning of that section, in that company; and

(ii) during the year of income or the preceding year of income, the company has not derived an amount of interest income exceeding 10% of the total profits derived by the company during the same year.

intermediary (Repealed by No 32 of 2008)

international tax sharing treaty (Repealed by No 101 of 2013)

life assurance company has the meaning given to life insurance company by the Income Tax Assessment Act 1997.

life assurance policy has the meaning given to life insurance policy by the Income Tax Assessment Act 1997.

life assurance premium has the meaning given to life insurance premium by the Income Tax Assessment Act 1997.

limited partner has the same meaning as in the Income Tax Assessment Act 1997.

limited partnership has the same meaning as in the Income Tax Assessment Act 1997.

liquidator means the person who, whether or not appointed as liquidator, is the person required by law to carry out the winding-up of a company.

live stock (Repealed by No 101 of 2006)

loss carry back tax offset (Repealed by No 96 of 2014)

loss year has the same meaning as in the Income Tax Assessment Act 1997.

managed investment trust has the same meaning as in the Income Tax Assessment Act 1997.

MEC group has the same meaning as in the Income Tax Assessment Act 1997.

medical expense rebate higher phase-in limit has the meaning given by subsection 159Q(5).

[CCH Note: Definition of "medical expense rebate higher phase-in limit" will be repealed by No 11 of 2014, s 3 and Sch 3 item 3, effective 1 July 2019.]

medical expense rebate lower phase-in limit has the meaning given by subsection 159Q(6).

[CCH Note: Definition of "medical expense rebate lower phase-in limit" will be repealed by No 11 of 2014, s 3 and Sch 3 item 3, effective 1 July 2019.]

Medicare levy means Medicare levy imposed as such by any Act as assessed under this Act.

Medicare levy (fringe benefits) surcharge has the meaning given by the Income Tax Assessment Act 1997.

member of a consolidated group or MEC group has the same meaning as in the Income Tax Assessment Act 1997.

member of a family tax benefit (Part B) family without shared care : a taxpayer is a member of a family tax benefit (Part B) family without shared care if:


(a) the taxpayer, or the taxpayer's spouse while being the taxpayer's partner (within the meaning of the A New Tax System (Family Assistance) Act 1999), is eligible for family tax benefit at the Part B rate (within the meaning of that Act); and


(b) clause 31 of Schedule 1 to that Act does not apply in respect of the Part B rate.

minerals has the meaning given by subsection 995-1(1) of the Income Tax Assessment Act 1997.

mining withholding tax means income tax payable in accordance with section 128V.

mortgage includes any charge, lien or encumbrance to secure the repayment of money.

mutual life assurance company means a life assurance company the profits of which are divisible only among the policy holders.

natural resource has the meaning given by subsection 995-1(1) of the Income Tax Assessment Act 1997.

necessary connection with Australia (Repealed by No 168 of 2006)

net capital gain has the same meaning as in the Income Tax Assessment Act 1997.

net capital loss has the same meaning as in the Income Tax Assessment Act 1997.

net GST has the meaning given by section 995-1 of the Income Tax Assessment Act 1997.

net input tax credit has the meaning given by section 995-1 of the Income Tax Assessment Act 1997.

non-assessable non-exempt income has the meaning given by the Income Tax Assessment Act 1997.

non-complying approved deposit fund has the meaning given by subsection 995-1(1) of the Income Tax Assessment Act 1997.

non-complying superannuation fund has the meaning given by subsection 995-1(1) of the Income Tax Assessment Act 1997.

non-entity joint venture has the meaning given by subsection 995-1(1) of the Income Tax Assessment Act 1997.

non-equity share has the same meaning as in the Income Tax Assessment Act 1997.

non-resident means a person who is not a resident of Australia.

"non-resident dividend income" (Repealed by No 85 of 1967)

non-resident superannuation fund (Repealed by No 15 of 2007)

non-share capital account has the same meaning as in the Income Tax Assessment Act 1997.

non-share capital return has the same meaning as in the Income Tax Assessment Act 1997.

non-share distribution has the same meaning as in the Income Tax Assessment Act 1997.

non-share dividend has the same meaning as in the Income Tax Assessment Act 1997.

non-share equity interest has the same meaning as in the Income Tax Assessment Act 1997.

once-only deduction: a deduction in a year of income in respect of a percentage of expenditure is a once-only deduction, in relation to the expenditure, if no deduction is allowable in respect of a percentage of the expenditure in any other year of income.

ordinary class has the same meaning as in the Income Tax Assessment Act 1997.

ordinary income has the same meaning as in the Income Tax Assessment Act 1997.

outstanding claims (Repealed by No 79 of 2010)

over-franking tax has the same meaning as in the Income Tax Assessment Act 1997.

owner of a farm management deposit has the meaning given by the Income Tax Assessment Act 1997.

ownership interest has the meaning given by section 125-60 of the Income Tax Assessment Act 1997.

paid in relation to dividends or non-share dividends includes credited or distributed.

paid-up share capital has the meaning given by subsection 995-1(1) of the Income Tax Assessment Act 1997.

parent has the meaning given by subsection 995-1(1) of the Income Tax Assessment Act 1997.

part of a distribution that is franked with an exempting credit has the same meaning as in the Income Tax Assessment Act 1997.

part of a distribution that is franked with a venture capital credit has the same meaning as in the Income Tax Assessment Act 1997.

partnership has the same meaning as in the Income Tax Assessment Act 1997.

passive commodity gain , in relation to a taxpayer, in relation to a year of income, means a gain realised by the taxpayer in a year of income from disposing of a forward contract or a futures contract, or a right or option in respect of a forward contract or a futures contract, in respect of any thing (a commodity):


(a) that is capable of delivery under an agreement for its delivery; and


(b) that is not an instrument creating or evidencing a chose in action;

unless the contract, right or option relates to the carrying on by the taxpayer of a business:


(c) of producing or processing the commodity; or


(d) that involves the use of the commodity as a raw material in a production process.

passive income , in relation to a taxpayer, in relation to a year of income means:


(a) dividends (within the meaning of this section) and non-share dividends paid to the taxpayer in the year of income; or


(b) unit trust dividends (within the meaning of Division 6C) paid to the taxpayer in the year of income; or


(c) a distribution made to the taxpayer in the year of income that is taken to be a dividend because of section 47; or


(d) an amount that is taken to be a dividend paid to the taxpayer in the year of income because of section 47A or 108 or Division 7A of Part III; or


(e) interest income derived by the taxpayer in the year of income; or


(f) annuities derived by the taxpayer in the year of income; or


(g) income derived by the taxpayer by way of rent (within the meaning of Part X) in the year of income; or


(h) royalties derived by the taxpayer in the year of income; or


(i) an amount derived by the taxpayer in the year of income as consideration for the assignment, in whole or in part, of any copyright, patent, design, trade mark or other like property or right; or


(j) profits of a capital nature that accrued to the taxpayer in the year of income; or


(k) passive commodity gains that accrued to the taxpayer in the year of income; or


(l) an amount included in the assessable income of the taxpayer of the year of income under section 102AAZD, 456, 457 or 459A;

but does not include:


(m) an amount that arose from an asset necessarily held by the taxpayer in connection with an insurance business actively carried on by the taxpayer; or


(n) an amount included in the taxpayer's assessable income under Division 83A of the Income Tax Assessment Act 1997 (about employee share schemes).

PDF (pooled development fund) means a company that is a PDF within the meaning of the Pooled Development Funds Act 1992, but does not include such a company in the capacity of a trustee.

PDF component , in relation to a company that becomes a PDF during the year of income and is still a PDF at the end of the year of income, means:


(a) in a case where the amount that, if:


(i) the period beginning at the start of the year of income and ending immediately before the company becomes a PDF were a year of income of the company; and

(ii) the period (the PDF notional year) beginning when the company becomes a PDF and ending at the end of the year of income were a year of income of the company; and

(iii) paragraph (c) of the definition of taxable income were omitted;
would be the company's taxable income of the PDF notional year is $1 or more - that amount; or


(b) otherwise - a nil amount.

permanent establishment, in relation to a person (including the Commonwealth, a State or an authority of the Commonwealth or a State), means a place at or through which the person carries on any business and, without limiting the generality of the foregoing, includes:


(a) a place where the person is carrying on business through an agent;


(b) a place where the person has, is using or is installing substantial equipment or substantial machinery;


(c) a place where the person is engaged in a construction project; and


(d) where the person is engaged in selling goods manufactured, assembled, processed, packed or distributed by another person for, or at or to the order of, the first-mentioned person and either of those persons participates in the management, control or capital of the other person or another person participates in the management, control or capital of both of those persons - the place where the goods are manufactured, assembled, processed, packed or distributed;

but does not include:


(e) a place where the person is engaged in business dealings through a bona fide commission agent or broker who, in relation to those dealings, acts in the ordinary course of his or her business as a commission agent or broker and does not receive remuneration otherwise than at a rate customary in relation to dealings of that kind, not being a place where the person otherwise carries on business;


(f) a place where the person is carrying on business through an agent:


(i) who does not have, or does not habitually exercise, a general authority to negotiate and conclude contracts on behalf of the person; or

(ii) whose authority extends to filling orders on behalf of the person from a stock of goods or merchandise situated in the country where the place is located, but who does not regularly exercise that authority;
not being a place where the person otherwise carries on business; or


(g) a place of business maintained by the person solely for the purpose of purchasing goods or merchandise.

Note:

Subsection (6) treats a person as carrying on, at or through a permanent establishment that is a place described in paragraph (d) of this definition, the business of selling the goods manufactured, assembled, processed, packed or distributed by the other person as described in that paragraph.

person has the same meaning as in the Income Tax Assessment Act 1997.

petroleum exploration company (Repealed by No 80 of 1975)

pooled superannuation trust has the meaning given by subsection 995-1(1) of the Income Tax Assessment Act 1997.

post FIF abolition credit means a post FIF abolition credit arising under:


(a) subsection 23AK(6); and


(b) subsection 717-220(2) of the Income Tax Assessment Act 1997; and


(c) subsection 717-255(2) of that Act.

post FIF abolition debit means a post FIF abolition debit arising under:


(a) subsection 23AK(2); and


(b) subsection 23B(1); and


(c) subsection 717-220(3) of the Income Tax Assessment Act 1997; and


(d) subsection 717-255(3) of that Act.

post FIF abolition surplus has the meaning given by section 23AK.

prescribed dual resident means a company that satisfies either of the following conditions:


(a) the first condition is that:


(i) the company is a resident of Australia within the meaning of subsection 6(1); and

(ii) there is an agreement (within the meaning of the International Tax Agreements Act 1953) in force in respect of a foreign country; and

(iii) the agreement contains a provision that is expressed to apply where, apart from the provision, the company would, for the purposes of the agreement, be both a resident of Australia and a resident of the foreign country; and

(iv) that provision has the effect that the company is, for the purposes of the agreement, a resident solely of the foreign country;


(b) the alternative condition is that the company:


(i) is a resident of Australia within the meaning of subsection 6(1) for no other reason than that it carries on business in Australia and has its central management and control in Australia; and

(ii) it is also a resident of another country; and

(iii) its central management and control is in another country.

present war (Repealed by No 216 of 1973)

primary production business has the meaning given by subsection 995-1(1) of the Income Tax Assessment Act 1997.

principal beneficiary of a special disability trust has the same meaning as in the Income Tax Assessment Act 1997.

private ancillary fund (Repealed by No 147 of 2011)

private company , in relation to a year of income, means a company that is a private company in relation to that year of income for the purposes of Division 7 of Part III.

proclaimed superannuation standards day means 1 July 1990.

provider , in relation to an RSA, has the same meaning as in the Retirement Savings Accounts Act 1997.

prudential standards has the same meaning as in the Income Tax Assessment Act 1997.

rebatable benefit has the meaning given by subsection 160AAA(1).

rebatable medical expense amount has the meaning given by subsections 159P(1) and (3).

[CCH Note: Definition of "rebatable medical expense amount" will be repealed by No 11 of 2014, s 3 and Sch 3 item 3, effective 1 July 2019.]

rebate income of an individual for a year of income is the sum of:


(a) the individual's taxable income for the year of income; and


(b) the individual's reportable superannuation contributions for the year of income; and


(c) the individual's total net investment loss for the year of income; and


(d) the individual's adjusted fringe benefits total for the year of income.

recognised large credit union has the meaning given by section 6H.

recognised medium credit union has the meaning given by section 6H.

recognised small credit union has the meaning given by section 6H.

reduced cost base of a CGT asset has the same meaning as in the Income Tax Assessment Act 1997.

registered tax agent (Repealed by No 114 of 2009)

relative has the meaning given by subsection 995-1(1) of the Income Tax Assessment Act 1997.

reportable fringe benefits total (Repealed by No 55 of 2016)

reportable superannuation contributions has the same meaning as in the Income Tax Assessment Act 1997.

Research Department (Repealed by No 110 of 2014)

Research Minister (Repealed by No 110 of 2014)

Research Secretary (Repealed by No 110 of 2014)

resident or resident of Australia means:


(a) a person, other than a company, who resides in Australia and includes a person:


(i) whose domicile is in Australia, unless the Commissioner is satisfied that the person's permanent place of abode is outside Australia;

(ii) who has actually been in Australia, continuously or intermittently, during more than one-half of the year of income, unless the Commissioner is satisfied that the person's usual place of abode is outside Australia and that the person does not intend to take up residence in Australia; or

(iii) who is:

(A) a member of the superannuation scheme established by deed under the Superannuation Act 1990; or

(B) an eligible employee for the purposes of the Superannuation Act 1976; or

(C) the spouse, or a child under 16, of a person covered by sub-subparagraph (A) or (B); and


(b) a company which is incorporated in Australia, or which, not being incorporated in Australia, carries on business in Australia, and has either its central management and control in Australia, or its voting power controlled by shareholders who are residents of Australia.

resident superannuation fund (Repealed by No 15 of 2007)

resident trust for CGT purposes has the same meaning as in the Income Tax Assessment Act 1997.

return on a debt interest or equity interest has the same meaning as in the Income Tax Assessment Act 1997.

return of income means a return of income, or of profits or gains of a capital nature, or of both income and such profits or gains.

royalty or royalties includes any amount paid or credited, however described or computed, and whether the payment or credit is periodical or not, to the extent to which it is paid or credited, as the case may be, as consideration for:


(a) the use of, or the right to use, any copyright, patent, design or model, plan, secret formula or process, trade mark, or other like property or right;


(b) the use of, or the right to use, any industrial, commercial or scientific equipment;


(c) the supply of scientific, technical, industrial or commercial knowledge or information;


(d) the supply of any assistance that is ancillary and subsidiary to, and is furnished as a means of enabling the application or enjoyment of, any such property or right as is mentioned in paragraph (a), any such equipment as is mentioned in paragraph (b) or any such knowledge or information as is mentioned in paragraph (c);


(da) the reception of, or the right to receive, visual images or sounds, or both, transmitted to the public by:


(i) satellite; or

(ii) cable, optic fibre or similar technology;


(db) the use in connection with television broadcasting or radio broadcasting, or the right to use in connection with television broadcasting or radio broadcasting, visual images or sounds, or both, transmitted by:


(i) satellite; or

(ii) cable, optic fibre or similar technology;


(dc) the use of, or the right to use, some or all of the part of the spectrum (within the meaning of the Radiocommunications Act 1992) specified in a spectrum licence issued under that Act;


(e) the use of, or the right to use:


(i) motion picture films;

(ii) films or video tapes for use in connexion with television; or

(iii) tapes for use in connexion with radio broadcasting; or


(f) a total or partial forbearance in respect of:


(i) the use of, or the granting of the right to use, any such property or right as is mentioned in paragraph (a) or any such equipment as is mentioned in paragraph (b);

(ii) the supply of any such knowledge or information as is mentioned in paragraph (c) or of any such assistance as is mentioned in paragraph (d);

(iia) the reception of, or the granting of the right to receive, any such visual images or sounds as are mentioned in paragraph (da);

(iib) the use of, or the granting of the right to use, any such visual images or sounds as are mentioned in paragraph (db);

(iic) the use of, or the granting of the right to use, some or all of such part of the spectrum specified in a spectrum licence as is mentioned in paragraph (dc); or

(iii) the use of, or the granting of the right to use, any such property as is mentioned in paragraph (e).

RSA has the same meaning as in the Income Tax Assessment Act 1997.

Note:

That Act defines RSA as having the meaning given by the Retirement Savings Accounts Act 1997.

RSA provider has the same meaning as in the Income Tax Assessment Act 1997.

Note:

That Act defines RSA provider as having the same meaning as in the Retirement Savings Accounts Act 1997.

Second Commissioner means a Second Commissioner of Taxation.

"SGIO" (Repealed by No 101 of 2004)

share in a company has the meaning given by subsection 995-1(1) of the Income Tax Assessment Act 1997.

share capital account has the same meaning as in the Income Tax Assessment Act 1997.

shareholder includes member or stockholder.

shareholders' funds has the same meaning as in the Life Insurance Act 1995.

"share premium account" (Repealed by No 63 of 1998)

shorter period of review taxpayer or SPOR taxpayer (Repealed by No 161 of 2005)

shortfall interest charge means the charge worked out under Division 280 in Schedule 1 to the Taxation Administration Act 1953.

singles tier 1 threshold has the meaning given by the A New Tax System (Medicare Levy Surcharge - Fringe Benefits) Act 1999.

[CCH Note: Definition of "singles tier 1 threshold" will be repealed by No 11 of 2014, s 3 and Sch 3 item 3, effective 1 July 2019.]

small business entity has the meaning given by subsection 995-1(1) of the Income Tax Assessment Act 1997.

social security law has the meaning given by the Social Security Act 1991.

special disability trust has the same meaning as in the Income Tax Assessment Act 1997.

spouse has the meaning given by subsection 995-1(1) of the Income Tax Assessment Act 1997.

"State income tax law" (Repealed by No 73 of 1989)

statutory income has the meaning given by the Income Tax Assessment Act 1997.

Student Assistance Secretary has the meaning given by the Income Tax Assessment Act 1997.

subsidiary member of a consolidated group or a MEC group has the same meaning as in the Income Tax Assessment Act 1997.

superannuation benefits means individual personal benefits, pensions or retiring allowances.

superannuation fund means:


(a) a scheme for the payment of superannuation benefits upon retirement or death; or


(b) a superannuation fund within the definition of "superannuation fund" in section 10 of the Superannuation Industry (Supervision) Act 1993.

superannuation fund for foreign residents has the meaning given by subsection 995-1(1) of the Income Tax Assessment Act 1997.

superannuation lump sum has the same meaning as in the Income Tax Assessment Act 1997.

tainted , in relation to a company's share capital account, has the same meaning as in the Income Tax Assessment Act 1997.

tax means income tax imposed as such by any Act, as assessed under this Act, but does not include mining withholding tax or withholding tax.

taxable Australian property  has the same meaning as in the Income Tax Assessment Act 1997.

taxable income has the same meaning as in the Income Tax Assessment Act 1997.

taxable supply has the meaning given by section 195-1 of the GST Act.

tax cost is set has the same meaning as in the Income Tax Assessment Act 1997.

tax loss has the same meaning as in the Income Tax Assessment Act 1997.

tax offset refund has the meaning given by the Income Tax Assessment Act 1997.

taxpayer means a person deriving income or deriving profits or gains of a capital nature.

"the Income Tax Ordinances of Papua New Guinea" (Repealed by No 80 of 1975)

this Act includes:


(a) the Income Tax Assessment Act 1997; and


(b) Part IVC of the Taxation Administration Act 1953, so far as that Part relates to:


(i) this Act or the Income Tax Assessment Act 1997; or

(ii) Schedule 1 to the Taxation Administration Act 1953; and


(c) Schedule 1 to the Taxation Administration Act 1953.

Note:

Subsection (1AA) of this section prevents definitions in the Income Tax Assessment Act 1936 from affecting the interpretation of the Income Tax Assessment Act 1997.

"Timor Gap treaty" (Repealed by No 10 of 2003)

Timor Sea Treaty means the Treaty defined by subsection 5(1) of the Petroleum (Timor Sea Treaty) Act 2003.

total net investment loss has the same meaning as in the Income Tax Assessment Act 1997.

Trade Department (Repealed by No 110 of 2014)

Trade Minister (Repealed by No 110 of 2014)

Trade Secretary (Repealed by No 110 of 2014)

trading stock has the meaning given by section 70-10 of the Income Tax Assessment Act 1997.

Tribunal means the Administrative Appeals Tribunal.

trustee in addition to every person appointed or constituted trustee by act of parties, by order, or declaration of a court, or by operation of law, includes:


(a) an executor or administrator, guardian, committee, receiver, or liquidator; and


(b) every person having or taking upon himself the administration or control of income affected by any express or implied trust, or acting in any fiduciary capacity, or having the possession, control or management of the income of a person under any legal or other disability.

unfranked part of a distribution has the same meaning as in the Income Tax Assessment Act 1997.

value of the outstanding claims liability (Repealed by No 79 of 2010)

value of the outstanding claims liability (Repealed by No 79 of 2010)

value of the unearned premium reserve (Repealed by No 79 of 2010)

VCLP means a venture capital limited partnership within the meaning of subsection 118-405(2) of the Income Tax Assessment Act 1997.

VCMP means a venture capital management partnership.

venture capital deficit tax has the same meaning as in the Income Tax Assessment Act 1997.

venture capital management partnership has the meaning given by subsection 94D(3).

Veterans' Affairs Department (Repealed by No 110 of 2014)

Veterans' Affairs Minister (Repealed by No 110 of 2014)

Veterans' Affairs Secretary means the Secretary of the Department administered by the Minister administering the Veterans' Entitlements Act 1986.

withholding tax has the same meaning as in the Income Tax Assessment Act 1997.

work and income support related withholding payments and benefits means:


(a) payments from which an amount:


(i) must be withheld under a provision of Subdivision 12-B (other than section 12-55), 12-C or 12-D or Division 13 in Schedule 1 to the Taxation Administration Act 1953 (even if the amount is not withheld); or

(ii) would be required to be withheld under a provision mentioned in subparagraph (i) (other than section 12-55) apart from subsection 12-1(1A) in Schedule 1 to that Act; and


(b) amounts included in a person's assessable income under section 86-15 of the Income Tax Assessment Act 1997 in respect of which an amount must be paid under Division 13 in Schedule 1 to the Taxation Administration Act 1953 (even if the amount is not paid); and


(c) non-cash benefits in relation to which the provider of the benefit must pay an amount to the Commissioner under Division 14 in Schedule 1 to the Taxation Administration Act 1953 (even if the amount is not paid).

Note:

The payments covered by paragraph (a) are: payments to employees and company directors, payments to office holders, return to work payments, payments under labour hire arrangements, payments of annuities, superannuation benefits, payments for termination of employment, payments for unused leave, benefit payments, compensation payments and payments specified by regulations.

year of income means an income year as defined in subsection 995-1(1) of the Income Tax Assessment Act 1997.

year of tax means the financial year for which income tax is levied.

6(1A)  

 View history reference
Unless the contrary intention appears, a reference in this Act to a failure to do an act or thing includes a reference to a refusal to do the act or thing.

Archived:

The following definitions in s 6(1) have been repealed as inoperative by No 101 of 2006, s 3 and Sch 1 items 6 to 31, effective 14 September 2006. For application and savings provisions and for former wording see the CCH Australian Income Tax Legislation archive: adopted child, assessable income from petroleum, Commonwealth country, Commonwealth labour market program, electronic signature, exempt income from petroleum, failure to notify penalty, firearms surrender arrangements, fishing operations, forest operations, horticulture, income from petroleum, income tax laws of Papua New Guinea, late reconciliation statement penalty, Papua New Guinea, Papua New Guinea independence day, pearling operations, petroleum, petroleum prospecting or mining information, petroleum prospecting or mining right, previous Act, primary production, public securities, reportable fringe benefits amount, shares, tainting amount.

Archived:

The following definitions in s 6(1) have been substituted by No 101 of 2006, s 3 and Sch 2 items 118, 119, 121 to 124, 127, 129, 132 to 134, 136, 138 and 140, effective 14 September 2006. For application and savings provisions and for former wording see the CCH Australian Income Tax Legislation archive: apportionable deductions, assessable income, business, child, Commonwealth education or training payment, company, friendly society, general partner, minerals, natural resource, paid-up share capital, relative, spouse, year of income.

Archived:

S 6(1B) repealed as inoperative by No 101 of 2006, s 3 and Sch 1 item 32, effective 14 September 2006. For application and savings provisions and for former wording see the CCH Australian Income Tax Legislation archive.

6(2)  

(Repealed by No 97 of 2008)

6(2AA)  

 View history reference
A reference in this Act to an accounting period adopted in lieu of a year of income includes a reference to an accounting period:


(a) that commences or ends under section 18A; and


(b) that would, but for that section, form part of an accounting period so adopted.

6(2AB)  

 View history reference
The Commissioner may, by legislative instrument, make a determination modifying the operation of one or more provisions of this Act in relation to limited partnerships whose accounting periods commence or end under section 18A of the Income Tax Assessment Act 1936.

6(2AC)  

 View history reference
A determination can only be made under subsection (2AB) in order to take account of the fact that such accounting periods are of less than 12 months' duration.

6(2AD)  

(Repealed by No 58 of 2006)

6(2A)  

(Repealed by No 97 of 2008)

6(3)  

 View history reference
The express references in this Act to companies do not imply that references to persons do not include references to companies.

6(4)  

 View history reference
Paragraph (d) of the definition of dividend in subsection (1) does not apply if, under an arrangement:


(a) a person pays or credits any money or gives property to the company and the company credits its share capital account with the amount of the money or the value of the property; and


(b) the company pays or credits any money, or distributes property to another person, and debits its share capital account with the amount of the money or the value of the property so paid, credited or distributed.

6(5)  

(Repealed by No 63 of 1998)

6(6)  

 View history reference
Where a place is, by virtue of paragraph (d) of the definition of permanent establishment in subsection (1), a permanent establishment of a person, the person shall, for the purposes of this Act, be deemed to be carrying on at or through that permanent establishment the business of selling the goods manufactured, assembled, processed, packed or distributed by the other person at the place that is that permanent establishment.

Archived:

S 6(7) to (8) repealed as inoperative by No 101 of 2006, s 3 and Sch 1 item 33, effective 14 September 2006. For application and savings provisions and for former wording see the CCH Australian Income Tax Legislation archive.


 



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