Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-90 - CONSOLIDATED GROUPS  

Division 715 - Interactions between this Part and other areas of the income tax law  

Subdivision 715-A - Treatment of unrealised losses existing when ownership or control of a company changes before or during consolidation  

Effect of first and second choices on various kinds of assets

SECTION 715-145   Effect of choice on adjustable value of leaving asset  

715-145(1)    
This section has effect for the purposes of determining the consequences of a choice under any of sections 715-100 , 715-105 , 715-125 , 715-130 and 715-185 (the choice provisions ) for a leaving asset.

715-145(2)    

The asset ' s adjustable value at the time (the test time ) just before the leaving time is worked out under this table. (If the asset is covered by 2 or more items, there are consequences for it under the choice provisions and this section in respect of each of the items.)

Adjustable value at the test time
Item	If:	Its adjustable value is:
1	the asset is a *CGT asset	its *reduced cost base
2	the asset is an item of *trading stock of the *head company at the test time, and became part of the *head company ' s trading stock in the income year (the test year ) in which the test time occurs	its *cost
3	the asset is an item of *trading stock of the *head company at the test time, item 2 does not apply, and at the end of the last income year before the test year, the item was *valued at its *cost	its *cost
4	the asset is an item of *trading stock of the *head company at the test time and neither of items 2 and 3 applies	its *value as trading stock of the head company on hand at the start of the income year in which the test time occurs
5	the asset is a *depreciating asset	worked out under section 40-85
6	the asset is a *revenue asset	the total of the amounts that would be subtracted from the gross disposal proceeds in calculating any profit or loss on disposal of the asset by the head company

715-145(3)    
If any of the choice provisions reduces at the test time the asset ' s ^* adjustable value, the thing identified for the asset under the table in subsection (2) of this section is reduced by the same amount.

715-145(4)    
Subsection (3) has effect for the purposes of working out under section 711-30 the ^* head company ' s ^* terminating value for the asset at the leaving time.