Taxation Laws Amendment Act (No. 4) 2002 (53 of 2002)

Schedule 4   Effective life of depreciating assets

Part 1   Amendments

Income Tax Assessment Act 1997

10   After subsection 58-75(5)

Insert:

(5A) Assume that section 40-102 did not apply to a *privatised asset unless all of the following are satisfied:

(a) it is an entity sale situation within the meaning of section 58-5;

(b) a *capped life applies to the asset under subsection 40-102(4) or (5) at both the asset's *start time and the *transition time;

(c) the *transition entity chooses, for the purposes of this section, to have section 40-102 apply to the asset.

If section 40-102 is to be applied to the asset, disregard paragraphs 40-102(2)(a) and (b) and assume that the relevant time for the purposes of the application of that section to the asset were the transition time.