INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART IIIA - CAPITAL GAINS AND CAPITAL LOSSES  

Division 5B - Property installed on leased Crown land  

SECTION 160ZWD   TERMINATION ETC. OF CROWN LEASE FOLLOWED BY GRANT OF FRESH CROWN LEASE OR OF FREEHOLD TO ASSOCIATE OF LESSEE  

160ZWD(1)   When section applies.  

This section applies if:

(a) an entity holds land under a quasi-ownership right granted by an exempt Australian government agency or an exempt foreign government agency; and

(b) a unit of property is attached to the land; and

(c) the entity is the quasi-owner of the unit under subsection 42-310(1) of the Income Tax Assessment Act 1997 ; and

(d) the quasi-ownership right expires or is surrendered or terminated; and

(e) the expiry, surrender or termination is followed by:

(i) the grant to an associate of the entity of one or more fresh quasi-ownership rights over the land; or

(ii) the grant or transfer to an associate of the entity of an estate in fee simple in the land; and

(f) if the entity is not a partnership - the entity is taken, for the purposes of this Part, to have disposed of the entity's interest in the unit because of the expiry, surrender or termination of the quasi-ownership right; and

(g) if the entity is a partnership - a partner in the partnership is taken, for the purposes of this Part, to have disposed of the partner's interest in the unit because of the expiry, surrender or termination of the quasi-ownership right; and

(h) neither section 160ZZF nor section 160ZWA applies in relation to the disposal mentioned in paragraph (f) or (g).

160ZWD(2)   Entity not a partnership - reduced cost base to be reduced by depreciated value of unit.  

If the entity is not a partnership, subsection 160ZK(1) has effect, in relation to the disposal of the entity's interest in the unit, as if the amount mentioned in paragraph 160ZK(1)(a) were further reduced by the undeducted cost of the unit under Division 42 (Depreciation) of the Income Tax Assessment Act 1997 immediately before the expiry, surrender or termination of the quasi-ownership right.

160ZWD(3)   Entity a partnership - reduced cost base to be reduced by partner's portion of depreciated value of unit.  

If the entity is a partnership, subsection 160ZK(3) has effect, in relation to the disposal by a partner in the partnership of the partner's interest in the unit, as if the amount mentioned in paragraph 160ZK(3)(a) were further reduced by so much of the undeducted cost of the unit under Division 42 (Depreciation) of the Income Tax Assessment Act 1997 immediately before the expiry, surrender or termination of the quasi-ownership right as is attributable to the partner's interest in the unit.