Document ID: chunk:federal_register_of_legislation:C2025C00029:section:2:p5
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 2 (pt 5/9)
Character Range: 960555–963270

*opening adjustable value for the income year (the later year) after the one in which the *balancing adjustment event occurred is that cost plus any amounts included in the second element of that cost after the event occurred and before the start of the later year.
Note: Those items deal with a case where a balancing adjustment event happens even though you still hold the asset in question.
 (5) Despite subsection (1), an amount included in your assessable income under that subsection is included for the second income year after the income year in which the *balancing adjustment event occurs if:
 (a) the *depreciating asset is a vessel; and
 (b) you have a certificate for the vessel under Part 2 of the Shipping Reform (Tax Incentives) Act 2012 that:
 (i) applies to the day that the balancing adjustment event occurs; and
 (ii) is not a *shipping exempt income certificate.
Note: An amount will not be included in your assessable income in relation to the balancing adjustment event if you choose roll‑over relief under section 40‑362.

40‑290  Reduction for non‑taxable use
 (1) You must reduce the amount (the balancing adjustment amount) included in your assessable income, or the amount you can deduct, under section 40‑285 for a *depreciating asset if your deductions for the asset have been reduced under section 40‑25.
 (2) The reduction is:
where:
sum of reductions is the sum of:
 (a) the reductions in your deductions for the asset under section 40‑25; and
 (b) if there has been roll‑over relief for the asset under section 40‑340—the reductions in deductions for the asset for the transferor or an earlier successive transferor under section 40‑25; and
 (c) if you *hold the asset as the *legal personal representative of an individual—the reductions in deductions for the asset for the individual under section 40‑25.
total decline is the sum of:
 (a) the decline in value of the *depreciating asset since you started to *hold it; and
 (b) if there has been roll‑over relief for the asset under section 40‑340—the decline in value of the asset for the transferor or an earlier successive transferor; and
 (c) if you *hold the asset as the *legal personal representative of an individual—the decline in value of the asset for the individual.
 (3) You must further reduce the amount included in your assessable income, or the amount you can deduct, under section 40‑285 for a *depreciating asset (the current asset) if:
 (a) the asset's *cost (for you) was worked out under section 40‑205 (Cost of a split depreciating asset) or 40‑210 (Cost of merged depreciating assets); and
 (b) you used the depreciating asset from which the current asset was split, or a depreciating asset that was merged