INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART IIIA - CAPITAL GAINS AND CAPITAL LOSSES  

Division 5 - Leases  

SECTION 160ZV   CONSIDERATION FOR DISPOSAL  

160ZV(1)   [Disposal by way of expiry, etc of lease]  

For the purposes of this Part, the consideration for the disposal of an asset constituted by a lease, being a disposal by way of the expiry, forfeiture or surrender of the lease, includes any amount paid or payable by the lessor to the lessee upon the disposal in respect of expenditure of a capital nature incurred by the lessee in making improvements to the property that was the subject of the lease.

160ZV(2)   [Subsequent disposal by owner]  

If an asset, being property that was the subject of a lease in respect of the expiry, forfeiture or surrender of which an amount was paid or payable by the lessor to the lessee as mentioned in subsection (1), is subsequently disposed of in whole or in part by the owner, the amount so paid or payable shall be deemed, for the purpose of ascertaining the cost base, the indexed cost base or the reduced cost base to the owner of the asset or part of the asset so disposed of, to be expenditure to which paragraph 160ZH(1)(c) , (2)(c) or (3)(c), as the case may be, applies.