Commonwealth Consolidated Acts

INCOME TAX ASSESSMENT ACT 1997 - SECT 40.295

  (1)   A balancing adjustment event occurs for a * depreciating asset if:

  (a)   you stop * holding the asset; or

  (b)   you stop using it, or having it * installed ready for use, for any purpose and you expect never to use it, or have it installed ready for use, again; or

  (c)   you have not used it and:

  (i)   if you have had it installed ready for use--you stop having it so installed; and

  (ii)   you decide never to use it.

Note:   A balancing adjustment event occurs under paragraph   40 - 295(1)(a) when you start holding a depreciating asset as trading stock.

  (1A)   A balancing adjustment event occurs for a * depreciating asset you * hold that is a * mining, quarrying or prospecting right, or * mining, quarrying or prospecting information, if:

  (a)   the only reason that subsection   40 - 80(1) does not apply to the right or information is that the right or information does not meet the requirements of paragraph   40 - 80(1)(d) or (e); and

  (b)   you have neither budgeted nor planned for further expenditure that:

  (i)   will relate to the tenement to which the right or information relates; and

  (ii)   will exceed the minimum expenditure required to maintain the tenement; and

  (c)   you choose to apply this subsection to the right or information.

  (1B)   A balancing adjustment event occurs for a * depreciating asset you * hold that is a * mining, quarrying or prospecting right, or * mining, quarrying or prospecting information, if:

  (a)   since the last time you commenced to hold the right or information, a * balancing adjustment event occurred, because of subsection   (1A), to the right or information; and

  (b)   paragraph   (1A)(b) no longer applies.

  (2)   A balancing adjustment event occurs for a * depreciating asset if:

  (a)   for any reason, a change occurs in the * holding of, or in the interests of entities in, the asset; and

  (b)   the entity or one of the entities that had an interest in the asset before the change has an interest in it after the change; and

  (c)   the asset was a partnership asset before the change or becomes one as a result of the change.

  (3)   However, a balancing adjustment event does not occur for a * depreciating asset merely because you split it into 2 or more depreciating assets or you merge it with one or more other depreciating assets.

Note:   A balancing adjustment event will occur if you stop holding part of a depreciating asset.