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

Schedule 2   General consequential amendments

Income Tax Assessment Act 1936

143   Subsection 42A-105(4) of Schedule 2E

Repeal the subsection, substitute:

(4) If the car is afterwards acquired by an associate of the lessee, the cost of the car for the purpose of calculating its adjustable value, within the meaning of Division 40 of the Income Tax Assessment Act 1997, at the time of the acquisition for the purposes of the application of this Act to the associate is taken to be whichever is the lesser of:

(a) the sum of:

(i) the amount that would have been the adjustable value of the car (within the meaning of the Income Tax Assessment Act 1997) at that time for the purposes of the application of this Act to the lessee if the lessee were not taken under this Division to have disposed of the car; and

(ii) any amount that is included in the lessee's assessable income under subsection 59(2), under the former Subdivision 42F or 42G of the Income Tax Assessment Act 1997 or under Subdivision 40-D of that Act because the lessee is taken under this Division to have disposed of the car; or

(b) the cost of the acquisition of the car by the associate.