INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)
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Hide history noteIn this section, ``asset to which this section applies'' means an asset that is a unit of industrial property within the meaning of Division 10B of Part III .
160ZZD(2) [Grant of licence disposal for purposes of Div 10B]Where the grant of a licence in respect of an asset to which this section applies constitutes a disposal of part of the asset for the purposes of Division 10B, then, for the purposes of this Part, the grant of the licence constitutes a disposal by the grantor of that part of the asset and constitutes an acquisition of an asset (that is to say, the licence) by the grantee.
160ZZD(3) [Disposal of part of asset]Where, during the year of income, a taxpayer disposes of part of an asset to which this section applies, the following provisions of this section have effect for the purposes of this Part.
160ZZD(4) [Disposal more than 12 months after acquisition]Where the disposal takes place more than 12 months after the day on which the asset was acquired by the taxpayer:
(a) in a case to which paragraph (b) does not apply:
(i) if the consideration in respect of the disposal is less than the indexed cost base to the taxpayer in respect of the asset, this Part (other than this Division) does not apply in relation to the disposal but the taxpayer shall be deemed also to have disposed of, and to have immediately re-acquired, at the same time as the first-mentioned disposal, so much of the asset as was not disposed of by the first-mentioned disposal for a consideration equal to the amount by which that indexed cost base exceeded the consideration in respect of the first-mentioned disposal; or
(ii) if the consideration in respect of the disposal is not less than the indexed cost base to the taxpayer in respect of the asset:
(A) the amount of that indexed cost base shall be deemed to be nil; and
(B) if the consideration in respect of the disposal exceeds that indexed cost base - a capital gain equal to the excess shall be deemed to have accrued to the taxpayer during the year of income; or
(b) if, as a result of a previous application or applications of this section, the amount of the indexed cost base to the taxpayer in respect of the asset is nil - a capital gain equal to the consideration in respect of the disposal shall be deemed to have accrued to the taxpayer during the year of income. 160ZZD(5) [Disposal within 12 months of acquisition]
Where the disposal took place within 12 months after the day on which the asset was acquired by the taxpayer:
(a) in a case to which paragraph (b) does not apply -
(i) if the consideration in respect of the disposal is less than the cost base to the taxpayer in respect of the asset, this Part (other than this Division) does not apply in relation to the disposal but the taxpayer shall be deemed also to have disposed of, and to have immediately re-acquired, at the same time as the first-mentioned disposal, so much of the asset as was not disposed of by the first-mentioned disposal for a consideration equal to the amount by which that cost base exceeded the consideration in respect of the first-mentioned disposal; or
(ii) if the consideration in respect of the disposal is not less than the cost base to the taxpayer in respect of the asset -
(A) the amount of that cost base shall be deemed to be nil; and
(B) if the consideration in respect of the disposal exceeds that cost base - a capital gain equal to the excess shall be deemed to have accrued to the taxpayer during the year of income; or
(b) if, as a result of a previous application or applications of this section, the amount of the cost base to the taxpayer in respect of the asset is nil - a capital gain equal to the consideration in respect of the disposal shall be deemed to have accrued to the taxpayer during the year of income. 160ZZD(6) [Licence]
Subsections (3), (4) and (5) apply in relation to an asset, being a licence in respect of an asset to which this section applies, in the same manner as those subsections apply in relation to an asset to which this section applies.
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