New Business Tax System (Capital Allowances - Transitional and Consequential) Act 2001 (77 of 2001)

Schedule 2   General consequential amendments

Income Tax Assessment Act 1997

328   Subsection 320-255(7)

Repeal the subsection, substitute:

(7) If a *depreciating asset that has been included in the *segregated exempt assets of a *life insurance company since the asset was acquired by the company or the initial segregation of those assets took place is transferred from those assets, then the company must assume for the purposes of Division 40 that:

(a) if the asset's *market value at the time of the transfer is greater than its *notional adjustable value at that time, the company:

(i) had, at the time immediately before the transfer, sold the asset for a consideration equal to its notional adjustable value at that time; and

(ii) had, at the time of the transfer, purchased the asset again for a consideration equal to its notional adjustable value at that time; or

(b) if the asset's market value at the time of the transfer is equal to or less than its notional adjustable value at that time, the company:

(i) had, at the time immediately before the transfer, sold the asset for a consideration equal to its market value at that time; and

(ii) had, at the time of the transfer, purchased the asset again for a consideration equal to its market value at that time.