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INCOME TAX ASSESSMENT ACT 1997

CHAPTER 1 - INTRODUCTION AND CORE PROVISIONS  

PART 1-4 - CHECKLISTS OF WHAT IS COVERED BY CONCEPTS USED IN THE CORE PROVISIONS  

Division 10 - Particular kinds of assessable income  

SECTION 10-5  

10-5  List of provisions about assessable income  

 View history reference
The provisions set out in the table:

· include in your assessable income amounts that are not *ordinary income; and
· vary or replace the rules that would otherwise apply for certain kinds of *ordinary income.

Provisions of the Income Tax Assessment Act 1997 are identified in normal text. The other provisions, in bold, are provisions of the Income Tax Assessment Act 1936.
Accrued leave transfer payments ..........15-5
alienated personal services income ..........86-15
allowances  
 see employment  
annual leave  
 see leave payments  
annuities ..........27H
approved deposit fund (ADFs)  
 see superannuation  
attributable income  
 see controlled foreign corporations  
avoidance of tax  
 general ..........177F
 diversion of income ..........121H
 see also transfers of income  
bad debts  
 see recoupment  
balancing adjustment  
 see capital allowances, investments, R&D, scientific research and tax exempt entities  
banking  
 offshore banking activities, income from ..........121EG(1)
 offshore banking unit, deemed interest on payments to by owner ..........121EK
barter transactions ..........21, 21A, 15-2
beneficiaries  
 see trusts  
benefits  
 business, non-cash ..........21A
 consideration, non-cash ..........21
 meals you provide in an in-house dining facility ..........32-70
 see also employment and superannuation  
bonus shares  
 see shares  
bounties ..........15-10
capital allowances  
 excess of termination value over adjustable value 
  generally ..........40-285
  for some cars ..........40-370
 depreciating asset in low-value pool ..........40-445(2)
 expenditure in software development pool ..........40-460
 recovery of petroleum resource rent tax ..........40-750(3)
capital gains ..........102-5
 see also insurance  
car expenses  
 cents per kilometres reimbursement of ..........15-70
carried interests  
 carried interests, not ordinary income ..........118-21
CFCs  
 see controlled foreign corporations  
charters  
 see shipping  
child  
 non-trust income of, unearned ..........102AE
 trust income of, unearned ..........102AG
collecting societies 
 payments of royalties by copyright collecting societies..........15-22
 payments of royalties by resale royalty collecting society..........15-23
company  
 see controlled foreign corporations, co-operative company, directors, dividends, liquidation, shareholders and shares  
compensation  
 live stock or trees, recoveries for loss of ..........385-130
 profits or income, insurance or indemnity for loss of ..........15-30
 received by lessor for lessee's non-compliance with lease obligation to repair ..........15-25
 trading stock, insurance or indemnity for loss of ..........70-115
 see also insurance, live stock, recoupment and scientific research  
consideration  
 see benefits  
consolidated groups and MEC groups  
 Assets in relation to Division 230 financial arrangement..........701-61(3)
controlled foreign corporations (CFCs)  
 attributable income of ..........456 to 459A
 see also dividends and taxes  
co-operative company  
 receipts of ..........119
credit union  
 see co-operative company  
currency gains  
 see foreign exchange  
currency losses  
 see recoupment  
death  
 see trusts  
debt/equity swap  
 see shares and units  
defence forces  
 allowances and benefits for service as a member of ..........15-2
depreciation  
 see capital allowances  
directors  
 excessive remuneration or retirement payment from company ..........109
distributions  
 see dividends  
dividends  
 benefit of LIC capital gain through a trust or partnership ..........115-280
 general ..........44(1)
 distribution from a controlled foreign corporation ..........47A(1)
 franked dividends, credits on ..........207-20(1), 207-35(1), 207-35(3)
 see also liquidation  
elections  
 local government, reimbursement of expenses of ..........25-65
 see also recoupment  
electricity connections  
 see recoupment  
[eligible termination payments (ETPs)] (Repealed by No 15 of 2007) 
employees  
 see shares  
employment  
 allowances and benefits in relation to employment or rendering services ..........15-2
 employment termination payment..........82-10
82-65
82-70
 other payments for employment termination..........83-295
 return to work payments..........15-3
 see accrued leave transfer payments, leave payments, superannuation and sections 82-10A and 82-10C of the Income Tax (Transitional Provisions) Act 1997  
environment  
 see recoupment  
farm management deposits  
 repayments of ..........393-10
[FIFs] (Repealed by No 114 of 2010) 
films  
 Australian, proceeds of investment in ..........26AG
financial arrangements  
 gains from..........230-15(1)
[first home saver accounts] (Repealed by No 70 of 2015) 
foreign exchange  
 gains ..........775-15
 see also recoupment  
foreign investment funds (FIFs) (Repealed by No 114 of 2010) 
forestry agreement  
 amount where section 82KZMG of the 1936 Act applies ..........15-45
 CGT event in relation to forestry interest in agreement..........82KZMGB
forestry managed investment schemes 
 forestry manager's receipts under scheme..........15-46
 CGT event in relation to forestry interest in scheme for initial participant..........394-25(2)
 CGT event in relation to forestry interest in scheme for subsequent participant..........394-30(2)
franked dividends  
 see dividends  
funeral policy  
 benefit under ..........15-55
general insurance companies and companies that self insure 
 gross premiums ..........321-45
 reduction in value of outstanding claims liability..........321-10 and 321-80
 reduction in value of unearned premium reserve..........321-50
geothermal energy 
 providing geothermal exploration information ..........15-40
grapevines  
 see recoupment  
horticultural plants  
 see recoupment  
improvements  
 see leases  
imputation  
 see dividends  
indemnity  
 see compensation and recoupment  
[industrial property] (Repealed by No 88 of 2013) 
infrastructure borrowings  
 see interest  
insurance  
 bonuses ..........26AH, 15-75
 company, demutualisation of ..........121AT
 life insurance, transfer of contributions by superannuation fund or approved deposit fund to ..........295-260
 payments from a non-resident reinsurer in respect of a loss ..........148
 premiums in respect of Australian business received by non-resident insurers ..........143
 premiums paid to a non-resident for reinsurance ..........148
 premiums paid to mutual insurance association ..........121
 premiums payable to a non-resident for insurance of property in Australia ..........142(1)
 premiums payable to a non-resident for insuring an event that can only happen in Australia ..........142(1)
 premiums payable to a non-resident under an insurance contract with a resident ..........142(2)
 rebates and premiums refunded to a superannuation fund trustee ..........295-320 (table item 4)
 see also compensation, life insurance companies and recoupment  
[intellectual property] (Repealed by No 77 of 2001) 
interest  
 infrastructure borrowings, on ..........159GZZZZG
 loans raised in Australia by foreign governments, on ..........27
 overpaid tax, on ..........15-35
 qualifying securities, on ..........159GQ, 159GW(1)
 see also co-operative companies and leases  
investments  
 prizes from investment-related lotteries ..........26AJ
 qualifying securities, payments to partial residents made under ..........159GW(2)
 qualifying securities, amount assessable to issuer of ..........159GT(1B)
 qualifying securities, balancing adjustment on the transfer of ..........159GS
 securities, variation in terms of ..........159GV(2)
 securities lending arrangements ..........26BC
 traditional securities, gains on the disposal or redemption of ..........26BB
 see also films and interest  
landcare operations  
 see recoupment  
leased plant ..........Division 45
leases  
 amounts received by lessor from lessee for non-compliance with lease obligation to repair ..........15-25
 interest component of payments under non-leveraged finance leases ..........159GK
 partnership leasing property under non-leveraged finance lease, new partner or contribution of capital since 14 May 1985 ..........159GO
 premiums relating to assignment of a lease granted before 20 September 1985 ..........26AB
 profit on disposal of previously leased motor vehicles ..........Subdivision 20-B
leases of luxury cars  
 accrual amounts ..........242-35
 adjustment amounts (lessee) ..........242-70
 adjustment amounts (lessor) ..........242-65
leave payments  
 accrued leave transfer payment ..........15-5
 unused annual leave payment..........83-10
 unused long service leave payment..........83-80
 see employment  
[life assurance companies] (Repealed by No 89 of 2000) 
life insurance companies ..........Subdivision 320-B
limited recourse debt  
 excessive deduction amount (debtor) ..........243-40
 excessive deduction amount (partner) ..........243-65
liquidation  
 distribution to a shareholder in winding up a company ..........47(1)
live stock  
 death or destruction of ..........Subdivision 385-E
 departing Australia and ..........385-160, 385-163
 insolvency, and ..........385-160, 385-163
 profits on death or disposal of ..........Subdivision 385-E, 385-160
 see also compensation and trading stock  
long service leave  
 see leave payments  
losses  
 see compensation  
lotteries  
 see investments  
managed investment trusts 
 gains etc. from carried interests..........275-200(2)
meals  
 see benefits  
[minerals resource rent tax] (Repealed by No 96 of 2014) 
Mining  
 providing mining, quarrying or prospecting information ..........15-40
minors  
 see child  
motor vehicles  
 see car expenses and leases  
mutual insurance  
 see insurance  
non-cash benefits  
 see benefits and employment  
notional sales and loans  
 adjustment amounts (lessee) ..........240-110(2)
 adjustment amounts (lessor) ..........240-105(2)
 notional interest ..........240-35(1)
 profit on actual sale ..........240-35(3)
 profit on notional sale ..........240-35(2)
offshore banking units  
 see banking  
partnerships  
 net income of, partner's interest in ..........92(1)
 uncontrolled partnership income, effect of ..........94
 see also leases  
[payments to members of copyright collecting societies] (Repealed by No 126 of 2009) 
petroleum  
 resource rent tax, recovery of ..........20-30(1)
 see also capital allowances  
[pooled depreciated property] (Repealed by No 77 of 2001) 
[pooled software] (Repealed by No 77 of 2001) 
premiums  
 see insurance, leases and superannuation  
primary production  
 see recoupment  
prizes  
 see investments  
profits  
 cross-border transfer pricing..........815-30
 profit-making undertaking or plan ..........15-15
 sale of property acquired before 20 September 1985 for profit-making by sale ..........25A
 see also avoidance of tax  
Project pools  
 An amount received for the abandonment, sale or other disposal of a project ..........40-830, 40-832
property  
 see profits and trusts  
quarrying  
 see mining and recoupment  
R&D 
 balancing adjustment..........40-292, 40-293, 355-315 and 355-525
 disposal of R&D results..........355-410
 feedstock adjustment..........355-465
rates  
 see recoupment  
recoupment  
 insurance or indemnity for deductible losses or outgoings ..........Subdivision 20-A
 other recoupment for certain deductible losses or outgoings ..........Subdivision 20-A
 see also car expenses, compensation, elections and petroleum  
registered emissions units 
 disposal of ..........420-25
 disposal for a non-commercial purpose ..........420-40
 difference between opening and closing value of ..........420-45
reimbursements  
 see car expenses, dividends, elections, petroleum and recoupment  
reinsurance  
 see insurance  
[repayments] (Repealed by No 66 of 2003) 
[research & development] (Repealed by No 93 of 2011) 
[residual value] (Repealed by No 88 of 2013) 
retirement payments  
 see directors, leave payments and shareholders  
rights to income  
 see transfers of income  
roads  
 see timber  
royalties ..........15-20
schemes  
 see avoidance of tax  
scholarship plan  
 benefit under ..........15-60
scientific research  
 consideration for disposal or destruction of buildings acquired for scientific research ..........73A(4)
securities  
 see investments  
services  
 see co-operative companies, employment, loans and trusts  
shareholders  
 excessive remuneration or retirement payment from company ..........109
 loans, payments and credits from company ..........Division 7A of Part III
 see also dividends  
shares  
 acquired in a debt/equity swap, profit on the disposal cancellation or redemption of ..........63E(4)
 bonus shares, cost of ..........6BA
 buy-backs ..........159GZZZJ to 159GZZZT
 employee share schemes ..........Subdivisions 83A-B and 83A-C
 holding company shares held by a subsidiary, cancellation of ..........159GZZZC to 159GZZZI
 small-medium enterprise, profit on disposal of shares in ..........128TG to 128TL
 see also dividends  
shipping  
 goods shipped in Australia, amounts paid to foreign shipowners and charterers for ..........129
small-medium enterprises (SMEs)  
 see shares  
[software] (Repealed by No 77 of 2001) 
[spectrum licences] (Repealed by No 77 of 2001) 
subsidies ..........15-10
[sugar industry exit grants] (Repealed by No 109 of 2014) 
superannuation  
 associated earnings on non-concessional contributions..........Subdivision 292-B
 benefits generally ..........Divisions 301 to 306
 benefits in breach of legislative requirements..........Division 304
 benefits received from older superannuation funds..........26AF, 26AFA
 complying fund becomes non-complying, effect of ..........295-320 (table item 2)
 contributions to an approved deposit fund ..........Subdivisions 295-C and 295-D
 contributions to an RSA..........Subdivision 295-C
 contributions to a superannuation fund..........Subdivisions 295-C and 295-D
 death benefits..........302-75, 302-85, 302-90, 302-145
 excess concessional contributions..........291-15(a)
 foreign superannuation funds and schemes, benefits from..........305-70
 member benefits..........301-20, 301-25, 301-35, 301-40, Subdivision 301-C
 foreign fund becoming Australian, effect of..........295-320 (table item 3)
 no-TFN contributions income..........295-605
 release authorities, payments from ..........304-15(4)
304-20
 returned contributions..........290-100
 trustee's liability to pay tax ..........295-5(2) and (3)
 see insurance  
tax avoidance  
 see avoidance of tax and transfers of income  
tax exempt entities  
 treatment of income and gains on becoming taxable ..........Schedule 2D
taxes  
 see dividends, foreign investment funds, interest and recoupment  
termination of employment  
 see directors, eligible termination payments, leave payments and shareholders  
theft  
 see recoupment  
[timber] (Repealed by No 77 of 2001) 
trading stock  
 change in interests in ..........70-100
 death of trader and ..........70-105
 difference between opening and closing value of ..........70-35
 disposal not at arm's length ..........70-20
 disposal of outside ordinary course of business ..........70-90, 70-95
 see also compensation and tax exempt entities  
transfer pricing 
 arm's length principle for cross-border conditions between entities..........Subdivision 815-B
 arm's length principle for permanent establishments..........Subdivision 815-C
transfers of income  
 consideration for transfer of right to income ..........102CA
 payments for transfer or disposal of property ..........262
 transferee, effect on of transfer of right to income ..........102C
 transferor, effect on of transfer of right to income ..........102B
travel expenses  
 see car expenses  
trusts  
 beneficiary under legal disability or with a vested and indefeasible interest in trust income ..........100
 deceased estates, income of ..........101A
 discretionary trusts ..........101
 net income of a trust estate, your present entitlement to ..........97, 101
 non-resident beneficiaries, liability to tax of ..........98A
 non-resident trust estates to which you have transferred property or services, income of ..........102AAZD
 property of applied for benefit of beneficiaries ..........99B
 trust estate includes income from another trust estate ..........94(5)
 trustees' liability to tax ..........98, 99, 99A, 102, 102S
 see also avoidance of tax and superannuation  
unearned income  
 see child  
units  
 acquired in a debt/equity swap, profit on the disposal, cancellation or redemption of ..........63E(4)
water conservation  
 see recoupment  
winding-up  
 see insurance and liquidation  
wool clips  
 double wool clips, treatment of ..........385-135, 385-155
work in progress  
 receipt of a work in progress amount ..........15-50

[CCH Note: S 10-5 will be amended by No 81 of 2016, s 3 and Sch 10 item 2, by omitting "304-15(4)" in table item headed "superannuation", effective 1 July 2018. For application provisions, see note under s 292-1.]


 



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