(1) This section applies if:
(a) an amount was included in the debtor's assessable income under section 243-40 or a deduction was reduced under section 243- 55; and
(b) the debtor makes a payment to the creditor, after the termination of the debt arrangement, in respect of the debt (other than an amount to the extent to which it is a payment of interest, of * notional interest or in the nature of interest).
(2) This is how to work out the amount of the deduction:
(3) The amount can be deducted for the income year in which the payment is made.
Limit on deductions
(4) The total amounts deducted under this section in respect of a debt, and under section 243-50 in respect of a replacement debt, cannot exceed the sum of:
(a) any amounts included in the debtor's assessable income under this Division in respect of the original debt; and
(b) any amount by which deductions in respect of the original debt were reduced under section 243- 55.