Document ID: chunk:federal_register_of_legislation:C2019A00059:clause:1_1:p3
Version: federal_register_of_legislation:C2019A00059
Segment Type: clause
Provision Reference: sch 1 cl 1 (pt 3/10)
Character Range: 8246–10854

(2) Section 40‑285 does not apply in relation to a *depreciating asset you *held if:
 (a) before the *Timor Sea Maritime Boundaries Treaty entered into force, you or another entity used the asset, or you or another entity had it *installed ready for use, for a purpose of undertaking *transitioned petroleum activities; and
 (b) on or after the day on which that treaty entered into force, a *balancing adjustment event occurs for the asset.
Note: The effect of this subsection is to prevent an amount being included in your assessable income, or a deduction arising, because of a balancing adjustment event. The balancing adjustment event still occurs, so the operation of a section such as section 118‑24 is unaffected.
 (3) It does not matter, for the purposes of paragraph (2)(a), whether the asset is also used, or *installed ready for use, for a purpose other than the purpose of undertaking *transitioned petroleum activities.
 (4) If, as a result of the *balancing adjustment event mentioned in paragraph (2)(b), another entity *holds the asset, the *cost of the asset to the other entity is taken to be the asset's *adjustable value to you just before the balancing adjustment event occurs.

417‑35  Allocating assets to a project pool
 (1) You may choose to allocate to a project pool all the *depreciating assets (the pooled assets) that:
 (a) you *held when the *Timor Sea Maritime Boundaries Treaty entered into force; and
 (b) before that treaty entered into force, you used, or had *installed ready for use, for a purpose of undertaking *transitioned petroleum activities.
 (2) You must choose by the day you lodge your *income tax return for the income year (the initial income year) in which that treaty entered into force.
 (3) The choice is irrevocable.
 (4) If you make the choice, for the purposes of Division 40 and section 417‑30:
 (a) the pooled assets are taken to be a single *depreciating asset that you *hold; and
 (b) the single asset is taken to be used, or *installed ready for use, for the same purpose as the purpose for which the pooled assets were used, or installed ready for use, when the *Timor Sea Maritime Boundaries Treaty entered into force; and
 (c) the *cost of the single asset is taken to be an amount equal to the sum of the *adjustable values of all of the pooled assets when that treaty entered into force; and
 (d) the decline in value of the single asset is taken to be:
 (i) for the initial income year—40% of its cost; and
 (ii) for the next income year—40% of its cost; and
 (iii) for the income year after that next income year—20% of its cost; and
 (e)