INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART IIIA - CAPITAL GAINS AND CAPITAL LOSSES  

Division 19A - Transfers of assets between companies under common ownership  

Subdivision C - Grouped assets  

SECTION 160ZZRDF   DEPRECIABLE PROPERTY GROUPS  

160ZZRDF(1)   Assets that may be in depreciable property group.  

An asset can be allocated to a depreciable property group if:

(a) the asset is a depreciable asset; and

(b) the asset is the first asset to be allocated to the group or is disposed of to the transferee in the same year of income of the transferor as the year in which other assets in the group are disposed of; and

(c) the original cost of the asset to the transferor was less than $1 million; and

(d) the asset is not a building.

160ZZRDF(2)   How and when Subdivision D applies to depreciable property groups.  

Subdivision D applies in a way specified in subsection (3) to all of the assets in a depreciable property group if:

(a) the sum of the consideration for the disposal of the assets in the group is less than the sum of the written down values of the assets in the group; and

(b) the sum of the market values of the assets in the group is not more than 10% greater than the sum of the written down values of the assets in the group.

The written down value and the market value of each asset is to be worked out when that asset is disposed of by the transferor.

160ZZRDF(3)   [Grouped assets deemed one asset]  

Subdivision D applies to all of the assets in a depreciable property group as if all of the grouped assets were one asset that:

(a) was disposed of at the earliest first asset disposal time for any asset in the group; and

(b) was disposed of for consideration equal to the sum of the consideration for the disposal of each of the assets; and

(c) had a written down value equal to the sum of the written down values of each of the assets.

In calculating the sums of written down values, the written down value of each asset at the first asset disposal time for that asset is to be used.