Notice of Rulings, Notice of Withdrawals

Administered by Department of the Treasury

Legislation au C2017G00404 In force Gazette

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COMMISSIONER OF TAXATION

The Commissioner of Taxation, Chris Jordan, gives notice of the following Rulings, copies of which can be obtained from http://ato.gov.au/law.

NOTICE OF RULINGS
Ruling Number	Subject	Brief Description
CR 2017/23	Income tax: Department of Health (Commonwealth) – Direct Funding Model of the Individual Support Packages sub‑Programme of the Commonwealth Continuity of Support Programme	The Ruling sets out the Commissioner’s position on individuals who enter into agreements to receive direct payments through the Direct Funding model of the Individual Support Packages sub‑programme of the Commonwealth Continuity of Support. The Ruling applies from 1 May 2017 to 31 December 2020.
CR 2017/24	Income tax: PRP Investment Trust: redemption of units	The Ruling sets out the Commissioner’s position on the holders of the Class C and Class F units in PRP Investment Trust. The Ruling applies from 1 July 2016 to 30 June 2017.
CR 2017/25	Income tax: Challenger Limited: Challenger Capital Notes 2	The Ruling sets out the Commissioner’s position on investors who are allotted non‑cumulative, convertible, transferable, redeemable, subordinated, perpetual, unsecured notes issued by Challenger Limited, called Challenger Capital Notes 2. The Ruling applies from 1 July 2016 to 30 June 2027.
LCG 2016/10	Superannuation reform: capped defined benefit income streams – non‑commutable, lifetime pensions and lifetime annuities	The Guideline describes how the Commissioner will apply the amendments made by the Treasury Laws Amendment (Fair and Sustainable Superannuation) Act 2016 to entities that rely on it in good faith. The Ruling applies to the 2017–18 financial year.

NOTICE OF WITHDRAWALS
Ruling Number	Subject	Brief Description
IT 90	Life insurance companies: general management expenses	Taxation Ruling IT 90 is withdrawn with effect from 12 April 2017.
IT 2619	Income tax: tax liability of professors and teachers visiting Australia from the United Kingdom	Taxation Ruling IT 2619 is withdrawn with effect from 12 April 2017.
IT 2635	Income tax: syndicated research and development arrangements	Taxation Ruling IT 2635 is withdrawn with effect from 12 April 2017.
TD 92/125	Income tax: Property Development Industry (PDI) Cell: what is the purpose of the PDI Cell?	Taxation Determination TD 92/125 is withdrawn with effect from 12 April 2017.
TD 92/140	Income tax: in Division 16D of Part III of the Income Tax Assessment Act 1936, what does effective life mean in applying the tests of a qualifying arrangement to items of second hand property?	Taxation Determination TD 92/140 is withdrawn with effect from 12 April 2017.
TD 92/193	Income tax: is the interest component of Household Support repayments, under the States and Northern Territory Grants (Rural Adjustment) Act 1988, an allowable deduction under subsection 51(1) of the Income Tax Assessment Act 1936 (ITAA)?	Taxation Determination TD 92/193 is withdrawn with effect from 12 April 2017.
TD 93/93	Income tax: will a section 160AB rebate continue to apply to interest derived from State Bank Victoria Deposit Stock issued before 1 November 1968 if the interest is paid by the Commonwealth Bank of Australia?	Taxation Determination TD 93/93 is withdrawn with effect from 12 April 2017.
TD 94/45	Income tax: may the material contained in the 1985, or earlier, ATO Assessing Handbooks be relied on as evidence of ATO’s interpretation, policy or practice in respect of the Income Tax Assessment Act 1936?	Taxation Determination TD 94/45 is withdrawn with effect from 12 April 2017.
TD 94/81	Income tax: where an ‘infrastructure facility’ is constructed or acquired by an unincorporated joint venture which is not a general law partnership, what is the nature of each joint venture participant’s interest in that property as to ‘ownership’, ‘use’ and ‘effective control of the use’ thereof for the purposes of paragraph 159GZZZZB(1)(a) of the Income Tax Assessment Act 1936?	Taxation Determination TD 94/81 is withdrawn with effect from 12 April 2017.
TD 1999/25	Income tax: interest withholding tax exemption under section 128F of the Income Tax Assessment Act 1936 – what conditions need to be satisfied before a resident company can raise finance by the issue of debentures through a ‘non‑resident borrowing subsidiary’ in another country?	Taxation Determination TD 1999/25 is withdrawn with effect from 12 April 2017.
TR 2002/1	Income tax: research and development: plant expenditure (pre 29 January 2001)	Taxation Ruling TR 2002/1 is withdrawn with effect from 12 April 2017.
TR 2002/6	Income tax: Simplified Tax System: eligibility – grouping rules (*STS affiliate, control of non fixed trusts)	Taxation Ruling TR 2002/6 is withdrawn with effect from 12 April 2017.

Overview

The Taxation Rulings and Determinations Notice 2017, issued by the Commissioner of Taxation under the Taxation Administration Act 1953, provides clarification and guidance on specific tax matters, including the tax treatment of income derived from certain arrangements and the withdrawal of previous rulings that are no longer applicable. These rulings are instrumental in ensuring taxpayers and tax practitioners have a clear understanding of the tax obligations and entitlements in various scenarios, thus facilitating compliance and reducing disputes. The policy objective behind these rulings is to offer certainty and predictability in the tax system, aiding in efficient tax administration and contributing to the overall economic stability by ensuring appropriate revenue collection. The rulings and determinations reflect the evolving nature of the tax landscape, addressing both new and existing issues that arise in the application of tax laws.

Scope and Application

The Commissioner of Taxation, Chris Jordan, has issued a series of rulings and withdrawn several taxation rulings and determinations, as published in the Gazette. The rulings address specific income tax scenarios such as the Direct Funding Model of the Individual Support Packages sub-programme of the Commonwealth Continuity of Support, the redemption of units in PRP Investment Trust, and the issuance of Challenger Capital Notes 2 by Challenger Limited. These rulings provide clarity on the tax treatment for these particular transactions and apply within specified time frames. The superannuation reform guideline addresses the application of certain superannuation amendments to entities that act in good faith. The withdrawn rulings and determinations, which were in effect until 12 April 2017, include various topics such as life insurance company expenses, tax liabilities for visiting professors and teachers, and deductions related to household support repayments. These withdrawals reflect the evolution of tax policy and the updating of guidance to ensure it remains relevant and accurate.

Key Provisions

The main operative sections of these Rulings and Guidelines provide the Commissioner of Taxation’s position on specific tax matters. For instance, CR 2017/23 (paragraph 1) outlines the Commissioner’s stance on income tax issues concerning individuals under the Direct Funding model of the Individual Support Packages sub-Programme of the Commonwealth Continuity of Support. Similarly, CR 2017/24 (paragraph 2) addresses the tax implications for holders of Class C and Class F units in PRP Investment Trust, while CR 2017/25 (paragraph 3) pertains to the tax treatment of Challenger Capital Notes 2 issued by Challenger Limited. Furthermore, LCG 2016/10 (paragraph 4) provides guidance on the application of superannuation reforms, particularly concerning capped defined benefit income streams. These Rulings and Guidelines impose specific obligations and requirements on the parties or entities they govern. For example, CR 2017/23 (paragraph 1) mandates that individuals entering into agreements under the Direct Funding model must comply with the specified tax rules. Similarly, CR 2017/24 (paragraph 2) and CR 2017/25 (paragraph 3) require unit holders and investors to adhere to the Commissioner’s outlined tax treatment for PRP Investment Trust units and Challenger Capital Notes 2, respectively. LCG 2016/10 (paragraph 4) also imposes requirements on entities relying on the amendments made by the Treasury Laws Amendment (Fair and Sustainable Superannuation) Act 2016, ensuring they act in good faith and comply with the guidelines provided. The Rulings and Guidelines do not explicitly mention any offences, penalties, or consequences for breach; however, non-compliance with these tax rulings and guidelines could potentially lead to civil or criminal consequences under the Income Tax Assessment Act 1936. Generally, breaches of tax laws can result in penalties such as fines, interest on unpaid taxes, and in severe cases, prosecution and imprisonment. The specific penalties depend on the nature and extent of the breach and are determined in accordance with the relevant tax legislation.

Area of Law: Taxation Law
Instrument: Gazette Notice
Concepts: Definitions & Interpretation; Offence Provisions; Compliance Obligations; Enforcement Powers

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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.

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