Income Tax Assessment Act 1997
View history note
Hide history noteYou may choose to allocate to a project pool all the *depreciating assets (the pooled assets ) that:
(a) you *held when the *Timor Sea Maritime Boundaries Treaty entered into force; and
(b) before that treaty entered into force, you used, or had *installed ready for use, for a purpose of undertaking *transitioned petroleum activities.
417-35(2)
You must choose by the day you lodge your *income tax return for the income year (the initial income year ) in which that treaty entered into force.
417-35(3)
The choice is irrevocable.
417-35(4)
If you make the choice, for the purposes of Division 40 and section 417-30 :
(a) the pooled assets are taken to be a single *depreciating asset that you *hold; and
(b) the single asset is taken to be used, or *installed ready for use, for the same purpose as the purpose for which the pooled assets were used, or installed ready for use, when the *Timor Sea Maritime Boundaries Treaty entered into force; and
(c) the *cost of the single asset is taken to be an amount equal to the sum of the *adjustable values of all of the pooled assets when that treaty entered into force; and
(d) the decline in value of the single asset is taken to be:
(i) for the initial income year - 40% of its cost; and
(ii) for the next income year - 40% of its cost; and
(iii) for the income year after that next income year - 20% of its cost; and
(e) a *balancing adjustment event cannot occur for the single asset; and
(f) a *CGT event cannot occur for the single asset; and
(g) amounts are not deductible, by you or any other entity, for declines in value of any of the assets allocated to the pool for:
(i) the part of the initial income year occurring on or after the entry into force of that treaty; or
(ii) any subsequent income year.
417-35(5)
The transfer of a pooled asset to another entity does not affect the operation of subsection (4) in relation to the single asset.
Disclaimer and notice of copyright applicable to materials provided by CCH Australia Limited
CCH Australia Limited ("CCH") believes that all information which it has provided in this site is accurate and reliable, but gives no warranty of accuracy or reliability of such information to the reader or any third party. The information provided by CCH is not legal or professional advice. To the extent permitted by law, no responsibility for damages or loss arising in any way out of or in connection with or incidental to any errors or omissions in any information provided is accepted by CCH or by persons involved in the preparation and provision of the information, whether arising from negligence or otherwise, from the use of or results obtained from information supplied by CCH.
The information provided by CCH includes history notes and other value-added features which are subject to CCH copyright. No CCH material may be copied, reproduced, republished, uploaded, posted, transmitted, or distributed in any way, except that you may download one copy for your personal use only, provided you keep intact all copyright and other proprietary notices. In particular, the reproduction of any part of the information for sale or incorporation in any product intended for sale is prohibited without CCH's prior consent.
