Document ID: chunk:federal_register_of_legislation:C2004A00445:clause:1_3:p1
Version: federal_register_of_legislation:C2004A00445
Segment Type: clause
Provision Reference: sch 1 cl 3 (pt 1/2)
Character Range: 31772–34658

3                            Another entity becomes the licensee, but an entity that was the licensee (alone or with others) immediately beforehand still has an interest in the spectrum licence immediately afterwards

380‑85  How to do the balancing adjustment

 (1) You make the adjustment by comparing:
 (a) the *spectrum licence's *termination value; and
 (b) your *unrecouped expenditure on the spectrum licence just before the *balancing adjustment event.

 (2) If the *termination value exceeds your *unrecouped expenditure, the excess is included in your assessable income. However, the amount included cannot be more than:
 • the total of the amounts (if any) you have deducted or can deduct for earlier income years under this Division for the *spectrum licence;
reduced by:
 • the total of each amount (if any) included in your assessable income for an income year, in respect of the spectrum licence, under this Division.

Note 1: An amount may be included in your assessable income under section 380‑40 (because of a partial realisation) or under section 380‑70 (because of a replacement).

Note 2: If roll‑over relief under Common rule 1 has previously applied to the spectrum licence: see section 41‑40 and subsections 380‑100(3) and (4).

Note 3: Subsection (4) of this section reduces your unrecouped expenditure to nil at the time of the balancing adjustment event.

 (3) If the *termination value is less than your *unrecouped expenditure, and you used the *spectrum licence in the *current year for the *purpose of producing assessable income, you can deduct for the current year the amount worked out as follows.

      How much you can deduct
           Step 1. Subtract the termination value from your unrecouped expenditure.
           Step 2. Work out the number of days in the current year before the *balancing adjustment event on which you used the spectrum licence for the purpose of producing assessable income.
           Step 3. Divide that number by the number of days in the current year before the *balancing adjustment event.
           Step 4. Multiply the results in steps 1 and 3. This is the amount you can deduct under this section.
 (4) Your *unrecouped expenditure is reduced to nil (if it is not nil already) at the time of the *balancing adjustment event (even if the *termination value equals your unrecouped expenditure).

Note: If the termination value equals your unrecouped expenditure, the balancing adjustment has no effect on your assessable income or deductions.

380‑90  Meaning of termination value

 (1) The *spectrum licence's termination value is worked out using the table. (If more than one case in the table applies, use the termination value in the last applicable case.)

 (2) However, the termination value is reduced if:
 (a) the *balancing adjustment event is an assignment or resumption of the *spectrum licence; and