Income Tax Assessment Act 1997
Encyclopedia
Income Tax Assessment Act 1997 is an act
Statute
A statute is a formal written enactment of a legislative authority that governs a state, city, or county. Typically, statutes command or prohibit something, or declare policy. The word is often used to distinguish law made by legislative bodies from case law, decided by courts, and regulations...

 of the Parliament of Australia
Parliament of Australia
The Parliament of Australia, also known as the Commonwealth Parliament or Federal Parliament, is the legislative branch of the government of Australia. It is bicameral, largely modelled in the Westminster tradition, but with some influences from the United States Congress...

. It's one of the main statutes under which income tax is calculated. The act is a rewrite in plain English of the prior Income Tax Assessment Act 1936
Income Tax Assessment Act 1936
Income Tax Assessment Act 1936 is an act of the Parliament of Australia. It's one of the main statutes under which income tax is calculated. The act is gradually being rewritten into the Income Tax Assessment Act 1997, and new matters are generally now added to the 1997 act.The reason for...

. New matters are now generally added to the 1997 act rather than the 1936 act too.

Highlights of the act include,

  • Section 8-1 — deductions for expenses incurred earning accessible income, this is the main section covering deductions.

  • Section 25-5 — tax deductibility of expenditure on managing tax affairs. This is a separate provision because such expenditure is not directly related to producing income.

  • Section 70-10 — the definition of "trading stock", including shares etc. held by someone in the business of buying and selling those.

  • Parts 3-1 and 3-3, being sections 100-1 to 152-425 — capital gains tax
    Capital gains tax in Australia
    Capital gains tax in the context of the Australian taxation system applies to the capital gain made on disposal of any asset, except for specific exemptions. The most significant exemption is the family home...

    .

    • Section 104-5 — the set of events that give rise to CGT consequences.

    • Section 104-145 — liquidator
      Liquidator (law)
      In law, a liquidator is the officer appointed when a company goes into winding-up or liquidation who has responsibility for collecting in all of the assets of the company and settling all claims against the company before putting the company into dissolution....

       declaring shares to be worthless (effective 11 November 1999).

    • Section 116-30 — gifts treated as disposals at market value.

  • Division 43 — building allowance, treated separate from other forms of depreciation.

External links

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