Document ID: chunk:federal_register_of_legislation:C2004C00927:clause:1_12:p5
Version: federal_register_of_legislation:C2004C00927
Segment Type: clause
Provision Reference: sch 1 cl 12 (pt 5/7)
Character Range: 272583–275283

until the end of 5 years after the next *balancing adjustment event occurs for the *plant.

42-280  Additional consequences

 (1) In addition to the consequences of the roll-over set out in
section 41-30 (about the transferor's and transferee's right to a deduction), the roll-over has the consequences set out in this section for the purposes of this Division.

Note: For other consequences of the roll-over, see the definitions of written down value in section 42-200 and undeducted cost in section 42-175 and the provisions dealing with balancing adjustments.

Cost

 (2) The *cost of the *plant is the same for the transferee as it is for the transferor.

Method

 (3) The transferee must use the same method for calculating depreciation deductions for the *plant as the transferor was using for the income year in which the *roll-over event occurred.

Effective life

 (4) The *effective life of the *plant in the hands of the transferee is the same as that worked out by the transferor, or the earliest successive transferor, under Subdivision 42-C.

Scientific research

 (5) If the transferor was deducting amounts for depreciation of the *plant using the special rate for plant used for scientific research in the fields of natural or applied science—the transferee is taken to have acquired the plant before 1 July 1995.

Note: This subsection allows the transferee to satisfy the condition of the special rate about date of acquisition, but the transferee will still have to satisfy the other conditions of the special rate in order to use it.

Offsetting

42-285  Same year relief

 (1) You do not have to include an amount in your assessable income for *plant as a result of a balancing adjustment calculation to the extent that you choose to treat that amount as an amount you have deducted for depreciation of other *plant.

 (2) You make the choice, for the same income year in which the *balancing adjustment event occurred, successively for:
 (a) any replacement *plant you acquire in that year; and
 (b) other *plant you acquire in that year; and
 (c) any other *plant.

 (3) You can only make this choice if:
 (a) at the end of the income year in which the *balancing adjustment event occurred, you used the replacement or other *plant, or had it *installed ready for use, wholly for the *purpose of producing assessable income; and
 (b) you can deduct an amount for depreciation of that plant.

 (4) The amount covered by the choice is taken to be an amount you have deducted for depreciation of the replacement or other *plant as at the first day of the income year in which the *balancing adjustment event occurred.

Note: Therefore, the amount must be taken into account