Tax Laws Amendment (Research and Development) Act 2011 (93 of 2011)

Schedule 3   Other amendments relating to new R&D incentive

Part 6   Other amendments

Income Tax Assessment Act 1997

75   Subsection 104-235(1B)

Repeal the subsection, substitute:

(1B) CGT event K7 also happens if:

(a) you are an *R&D entity; and

(b) a *balancing adjustment event occurs for a *depreciating asset you *held; and

(c) when you held the asset, you could deduct an amount under section 40-25 for the asset if the assumptions set out in paragraph (1A)(a) were made; and

(d) at some time when you held the asset:

(i) you used it other than for a taxable purpose or for the purpose of conducting *R&D activities for which you were registered under section 27A of the Industry Research and Development Act 1986; or

(ii) you had it installed ready for use other than for a taxable purpose.