Document ID: chunk:federal_register_of_legislation:C2025C00029:section:8:p27
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 8 (pt 27/30)
Character Range: 4227374–4230092

250‑135 does not apply when you do something to increase value of expected financial benefits
 (3) If:
 (a) you (or a *connected entity), or a *member of the tax preferred sector, do something, or omit to do something, at a particular time that increases the value of the *expected financial benefits in relation to the *tax preferred use of the asset; and
 (b) section 250‑135 does not apply to the asset at that time;
that section is taken, subject to subsection (4), to continue not to apply to you and the asset.
Note: This subsection means that if the arrangement is retested against section 250‑135 at a particular time and section 250‑135 does not apply to the arrangement on that retesting, the arrangement does not need to be again retested against section 250‑135 until a change of the kind referred to in subsection (4) occurs.

Retesting when you do something to increase the value of expected financial benefits
 (4) Subsection (2) or (3) ceases to apply to you and the asset if you (or a *connected entity), or a *member of the tax preferred sector, do something, or omit to do something, that increases the value of the *expected financial benefits in relation to the *tax preferred use of the asset.

Certain financial benefits ignored when retesting
 (5) For the purposes of reapplying section 250‑135 to the asset, disregard *financial benefits provided before subsection (2) or (3) of this section ceased to apply to the asset.
Note: If:
(a) subsection (2) or (3) ceases to apply to the asset at a particular time under this subsection; and
(b) the asset is retested at that time against section 250‑135; and
(c) on the retesting, that section is found to apply to the asset at that time;
 subsection (3) will start to apply to the asset again from that time because paragraph (3)(b) will have been satisfied.

Clarification that retesting only required if you do something to increase value of expected benefits
 (6) To avoid doubt, subsection (2) or (3) does not cease to apply merely because the value of the *expected financial benefits in relation to the asset increase because of something other than action taken, or an omission made, by you (or a *connected entity) or a *member of the tax preferred sector.
Note: This subsection means that retesting under subsection (4) is not triggered by an increase in the value of expected financial benefits that happens because of external circumstances (circumstances external to activities and omissions of yours, your connected entities and members of the tax preferred sector).

Subdivision 250‑C—Denial of, or reduction in, capital allowance deductions

Table of sections
250‑145 Denial of capital allowance deductions
250‑150 Apportionment rule