Tax Laws Amendment (2004 Measures No. 2) Act 2004 (83 of 2004)

Schedule 2   Consolidation etc.

Part 13   Privatised assets

Income Tax Assessment Act 1997

72   At the end of section 711-25

Add:

Increase in step 1 amount for certain former privatised assets

(3) If:

(a) the *head company of the old group *holds a *depreciating asset at the leaving time because the leaving entity is taken by subsection 701-1(1) (the single entity rule) to be a part of the head company; and

(b) the asset's *tax cost was set at the *tax cost setting amount when an entity (whether the leaving entity or another entity) became a *subsidiary member of the old group; and

(c) the tax cost setting amount for the asset was reduced because of section 705-47 (which is about certain assets that were *privatised assets);

the amount of the reduction is added to the step 1 amount.

Increase in step 1 amount for certain privatised assets

(4) If:

(a) the *head company of the old group *holds a *depreciating asset at the leaving time because the leaving entity is taken by subsection 701-1(1) (the single entity rule) to be a part of the head company; and

(b) the first element of the *cost of the asset was worked out by reference to subsection 58-70(5) because a *member of the old group acquired the asset as described in subsection 58-5(4) on or after 1 July 2002; and

(c) the amount of the first element of the cost of the asset is less than the amount it would have been apart from item 11 of the table in subsection 40-180(2) (which makes subsection 58-70(5) relevant to working out that element);

the difference between the amounts is added to the step 1 amount.