Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) For the purposes of Division 40, if:
(a) this Division applies to you and an asset; and
(b) the * arrangement period for the * tax preferred use of the asset ends at a particular time; and
(c) the asset would have had an * adjustable value at that time, for the purposes of Division 40, if this Division had never applied to the asset;
the adjustable value of the asset, immediately after the end of the arrangement period, is taken to be equal to the amount worked out using the following method statement:
Method statement
Step 1. Work out whether section 250 - 150 applies.
Step 2. If section 250 - 150 does not apply, the amount is the * end value of the asset at the end of the arrangement period.
Step 3. If section 250 - 150 does apply, the amount is worked out by:
(a) multiplying the * end value of the asset at the end of the * arrangement period by the * disallowed capital percentage; and
(b) then multiplying the adjustable value of the asset at the end of the arrangement period (worked out under section 40 - 85) by 100% minus the disallowed capital percentage); and
(c) then adding the amount obtained under paragraph (a) and the amount obtained under paragraph (b).
(2) If:
(a) this Division applies to you and an asset; and
(b) the * arrangement period for the * tax preferred use of the asset ends; and
(c) a net amount is included in your assessable income in relation to the * financial benefits that are * subject to the deemed loan treatment (taking into account the adjustments under Subdivision 250 - E in relation to the financial benefits that are subject to the deemed loan treatment);
the * cost base, and the * reduced cost base, of the asset are each taken to be reduced at the end of the arrangement period by an amount equal to the difference between:
(d) the total amounts or values of the financial benefits that were subject to deemed loan treatment; and
(e) the net amount referred to in paragraph (c).
Note: See subsection (6) in relation to the application of paragraph (d).
(3) If:
(a) this Division applies to you and an asset; and
(b) the * arrangement period for the * tax preferred use of the asset ends; and
(c) a net amount is allowed to you as a deduction in relation to the * financial benefits that are * subject to the deemed loan treatment (taking into account the adjustments under Subdivision 250 - E in relation to the financial benefits that are subject to the deemed loan treatment);
the * cost base, and the * reduced cost base, of the asset are each taken to be reduced at the end of the arrangement period by an amount equal to the sum of:
(d) the total amounts or values of the financial benefits that were subject to deemed loan treatment; and
(e) the net amount referred to in paragraph (c).
Note: See subsection (6) in relation to the application of paragraph (d).
(4) If:
(a) this Division applies to you and an asset; and
(b) the * arrangement period for the * tax preferred use of the asset ends; and
(c) a net amount is included in your assessable income in relation to the * financial benefits that are * subject to the deemed loan treatment (taking into account the adjustments under Subdivision 250 - E in relation to the financial benefits that are subject to the deemed loan treatment);
then, in determining the profit or loss on the sale of the asset, a deduction equal to the difference between the following is taken to have been allowed for expenditure by you in connection with the asset:
(d) the total amounts or values of the financial benefits that were subject to deemed loan treatment; and
(e) the net amount referred to in paragraph (c).
Note: See subsection (6) in relation to the application of paragraph (d).
(5) If:
(a) this Division applies to you and an asset; and
(b) the * arrangement period for the * tax preferred use of the asset ends; and
(c) a net amount is allowed to you as a deduction in relation to the * financial benefits that are * subject to the deemed loan treatment (taking into account the adjustments under Subdivision 250 - E in relation to the financial benefits that are subject to the deemed loan treatment);
then, in determining the profit or loss on the sale of the asset, a deduction equal to the sum of the following is taken to have been allowed for expenditure by you in connection with the asset:
(d) the total amounts or values of the financial benefits that were subject to deemed loan treatment; and
(e) the net amount referred to in paragraph (c).
Note: See subsection (6) in relation to the application of paragraph (d).
(6) In applying paragraphs (2)(d), (3)(d), (4)(d) and (5)(d), disregard subsection 250 - 160(2) (reasonable estimate of end value treated as financial benefit subject to deemed loan treatment).