Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) Where, during the reorganisation, the transferring body disposes of an asset (in this section called the relevant asset ) to a body corporate, this section has effect for the purposes of this Division.
(2) If, as at the transition, the body corporate has assumed (whether before, at or after the commencement of this section) a liability wholly or partly attributable to the relevant asset, or 2 or more such liabilities, whether or not the body corporate has also assumed other liabilities, the notional assumed liability in relation to the disposal is the amount equal to:
(a) so much of the amount of the liability when it is assumed as is attributable to the relevant asset; or
(b) the aggregate of so much of each of the amounts of the liabilities when they are respectively assumed as is attributable to the relevant asset;
as the case may be.
(3) Otherwise, the notional assumed liability in relation to the disposal is a nil amount.
(4) For the purposes of subsection ( 2), to the extent that, apart from this subsection, a liability is attributable to no asset disposed of by the transferring body to the body corporate before the transition, the liability shall be deemed to be attributable to the relevant asset to the extent of the amount calculated in accordance with the formula:
where:
"General Liability" is so much of the amount of the liability as, apart from this subsection, is attributable to no asset so disposed of.
"RMV of Relevant Assets" is the number of dollars in the relevant market value in relation to the disposal of the relevant asset; and
"RMV of All Assets" is the number of dollars in the sum of the respective relevant market values in relation to all disposals of assets by the transferring body to the body corporate before the transition.