Clean Energy (Consequential Amendments) Act 2011 (132 of 2011)

Schedule 2   Taxation amendments

Part 2   Amendments commencing at the same time as section 3 of the Clean Energy Act 2011 commences

Income Tax (Transitional Provisions) Act 1997

72A   After section 701A-5

Insert:

701A-7 Modified application of Part 3-90 of Income Tax Assessment Act 1997 to registered emissions units of continuing majority-owned entity

(1) The operation of Part 3-90 of theIncome Tax Assessment Act 1997 is modified in accordance with this section in relation to each asset of a continuing majority-owned entity that is a registered emissions unit just before the entity becomes a subsidiary member of the entity's designated group.

Continuing majority-owned entity to revalue its registered emissions units under normal provisions

(2) For the entity core purposes:

(a) subsection 701-35(5) of theIncome Tax Assessment Act 1997 does not apply in relation to the asset; and

(b) instead, the value of the asset at the end of the income year that ends, or, if section 701-30 of that Act applies, of the income year that is taken by subsection (3) of that section to end, is the value determined in accordance with sections 420-51 to 420-58 of that Act.

For head company, registered emissions units to be retained cost base asset with tax cost setting amount equal to entity's year-end valuation

(3) For the head company core purposes when the continuing majority-owned entity becomes a subsidiary member of the designated group, the asset is a retained cost base asset whose tax cost setting amount is equal to the value applicable in accordance with paragraph (2)(b).