Document ID: chunk:federal_register_of_legislation:C2004C01190:clause:2_216:p4
Version: federal_register_of_legislation:C2004C01190
Segment Type: clause
Provision Reference: sch 2 cl 216 (pt 4/8)
Character Range: 141547–144278

an income year that relates directly or indirectly to the asset.

 (2) The entity can deduct the amount of the *increasing adjustment for the income year.

 (3) However, the entity cannot deduct the amount to the extent (if any) that the adjustment arises from an increase in the extent to which the activity giving rise to the adjustment is of a private or domestic nature.

27‑95  Balancing adjustment events

 (1) The *termination value of a *depreciating asset is reduced if the relevant *balancing adjustment event is a *taxable supply. The reduction is an amount equal to the *GST payable on the supply.

 (2) However, subsection (1) does not apply if the *termination value of the *depreciating asset is modified under Division 40 to be its *market value.

 (3) The *termination value of a *depreciating asset is increased if the entity that *held the asset has a *decreasing adjustment that relates directly or indirectly to that *taxable supply in the income year in which the *balancing adjustment event occurred. The increase is the amount of the decreasing adjustment.

 (4) The *termination value of a *depreciating asset is decreased if the entity that *held the asset has an *increasing adjustment that relates directly or indirectly to that *taxable supply in the income year in which the *balancing adjustment event occurred. The decrease is the amount of the increasing adjustment.

 (5) An amount is included in the assessable income of the entity that *held the asset if the entity has a *decreasing adjustment that relates directly or indirectly to that *taxable supply in a later income year. The amount included is the amount of the decreasing adjustment.

 (6) The entity that *held the asset can deduct an amount if the entity has an *increasing adjustment that relates directly or indirectly to that *taxable supply in a later income year. The amount it can deduct is the amount of the increasing adjustment.

27‑100  Pooling

 (1) This section contains special rules for expenditure (the pooled expenditure) incurred by an entity:
 (a) on a *depreciating asset allocated to a low‑value pool; or
 (b) on a depreciating asset allocated to a pool under Division 328 for or in an income year; or
 (c) on *in‑house software if the expenditure on the software is allocated to a software development pool; and
 (d) on *project amounts if the amounts are allocated to a project pool.

Reduction to pools etc.

 (2) There is a reduction under subsection (3) or (5) if:
 (a) the pooled expenditure relates directly or indirectly to a *creditable acquisition or *creditable importation; and
 (b) the entity is or becomes entitled to an *input tax credit in an income year (the credit year) for the acquisition or