Tax Laws Amendment (2010 Measures No. 1) Act 2010 (56 of 2010)

Schedule 5   Consolidation

Part 6   Phasing out over-depreciation adjustments

2   Division 2 - Repeal of section 705-50 with effect from 1 July 2009

Income Tax Assessment Act 1997

68   Subsection 715-900(2) (note 2)

Repeal the note, substitute:

Note 2: The operation of Division 58 just before the joining time can affect the basis on which the tax cost is set for a depreciating asset that becomes an asset of the head company of the consolidated group at the joining time because of section 701-1 (the single entity rule). That Division provides the basis for working out under Division 40 the asset's adjustable value. This is the entity's terminating value for the asset, which in turn can affect the tax cost setting amount for the asset under sections 705-40, 705-45 and 705-47.