Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-45 - RULES FOR PARTICULAR INDUSTRIES AND OCCUPATIONS  

Division 417 - Timor Sea petroleum  

Subdivision 417-B - Capital allowances  

SECTION 417-30   Balancing adjustments  

417-30(1)    
If:

(a) before the *Timor Sea Maritime Boundaries Treaty entered into force, you *held a *depreciating asset that you used, or had *installed ready for use, for a purpose of undertaking *transitioned petroleum activities; and

(b) you stopped holding the asset when that treaty entered into force, because the asset ceased to exist at that time; and

(c) the cessation occurred in connection with the entry into force of that treaty;

the cessation is taken, for the purposes of this Act, not to be a *balancing adjustment event.

417-30(2)    
Section 40-285 does not apply in relation to a *depreciating asset you *held if:

(a) before the *Timor Sea Maritime Boundaries Treaty entered into force, you or another entity used the asset, or you or another entity had it *installed ready for use, for a purpose of undertaking *transitioned petroleum activities; and

(b) on or after the day on which that treaty entered into force, a *balancing adjustment event occurs for the asset.

Note:

The effect of this subsection is to prevent an amount being included in your assessable income, or a deduction arising, because of a balancing adjustment event. The balancing adjustment event still occurs, so the operation of a section such as section 118-24 is unaffected.

417-30(3)    
It does not matter, for the purposes of paragraph (2)(a), whether the asset is also used, or *installed ready for use, for a purpose other than the purpose of undertaking *transitioned petroleum activities.

417-30(4)    
If, as a result of the *balancing adjustment event mentioned in paragraph (2)(b), another entity *holds the asset, the *cost of the asset to the other entity is taken to be the asset ' s *adjustable value to you just before the balancing adjustment event occurs.