Section 230 — Income Tax Assessment Act 1997 (Cth)

This Division is about the tax treatment of gains and losses from your financial arrangements.

You recognise the gains and losses, as appropriate, over the life of a financial arrangement and ignore distinctions between income and capital unless specific rules apply.

If it is sufficiently certain that you will make a gain or loss, you use a compounding accruals method to recognise the gain or loss. Otherwise you use a realisation method. Instead of either, you may be able to choose to use a fair value or hedging method or to rely on your financial reports. You may also be able to choose to recognise foreign exchange gains and losses using a retranslation method.

Related sections

• s 218 — ‑5  Application of imputation rules to co‑operative companies
• s 219 — ‑1  What this Division is about
• s 220 — ‑1  What this Division is about
• s 235 — ‑1  What this Division is about
• s 240 — ‑1  What this Division is about
• s 242 — ‑1  What this Division is about

Research how courts apply s 230

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