Income Tax Assessment Act 1997

CHAPTER 2 - LIABILITY RULES OF GENERAL APPLICATION  

PART 2-5 - RULES ABOUT DEDUCTIBILITY OF PARTICULAR KINDS OF AMOUNTS  

Division 27 - Effect of input tax credits etc. on deductions  

Subdivision 27-B - Effect of input tax credits etc. on capital allowances  

SECTION 27-95   Balancing adjustment events  

27-95(1)    
The ^* termination value of a ^* depreciating asset is reduced if the relevant ^* balancing adjustment event is a ^* taxable supply. The reduction is an amount equal to the ^* GST payable on the supply.

27-95(2)    
However, subsection (1) does not apply if the ^* termination value of the ^* depreciating asset is modified under Division 40 to be its ^* market value.

27-95(3)    
The ^* termination value of a ^* depreciating asset is increased if the entity that ^* held the asset has a ^* decreasing adjustment that relates directly or indirectly to that ^* taxable supply in the income year in which the ^* balancing adjustment event occurred. The increase is the amount of the decreasing adjustment.

27-95(4)    
The ^* termination value of a ^* depreciating asset is decreased if the entity that ^* held the asset has an ^* increasing adjustment that relates directly or indirectly to that ^* taxable supply in the income year in which the ^* balancing adjustment event occurred. The decrease is the amount of the increasing adjustment.

27-95(5)    
An amount is included in the assessable income of the entity that ^* held the asset if the entity has a ^* decreasing adjustment that relates directly or indirectly to that ^* taxable supply in a later income year. The amount included is the amount of the decreasing adjustment.

27-95(6)    
The entity that ^* held the asset can deduct an amount if the entity has an ^* increasing adjustment that relates directly or indirectly to that ^* taxable supply in a later income year. The amount it can deduct is the amount of the increasing adjustment.