Document ID: chunk:federal_register_of_legislation:C2025C00029:section:8:p4
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 8 (pt 4/7)
Character Range: 927883–930526

mine, petroleum field or quarry).

Exception: intangibles
 (5) This section does not apply to an intangible *depreciating asset to which an item in the table in subsection 40‑95(7) applies.

40‑115  Splitting a depreciating asset
 (1) If a *depreciating asset you *hold is split into 2 or more assets, this Division applies as if you had stopped holding the original asset and started holding the assets into which it is split.
Note 1: For the cost of the split assets, see section 40‑205.
Note 2: A balancing adjustment event does not occur just because you split a depreciating asset: see section 40‑295.
 (2) If you stop *holding part of a *depreciating asset, this Division applies as if, just before you stopped holding that part, you had split the original asset into the part you stopped holding and the rest of the original asset. (The rest of the original asset is then taken to be a different asset from the original asset.)
Example: Bronwyn sells Tim a part interest in a depreciating asset she owns. They become joint holders under section 40‑35. She is taken to have split the underlying asset into the interest she retains and the interest Tim buys. She now holds an interest (a new depreciating asset) in the underlying asset and is taken to have stopped holding the interest sold.
 (3) If you grant or assign an interest in an item of *intellectual property, subsection (2) applies to you as if you had stopped *holding part of the item.

40‑120  Replacement spectrum licences
 (1) If:
 (a) some (but not all) of a *spectrum licence you *hold is assigned or resumed; and
 (b) your original licence is replaced by one or more other spectrum licences (possibly including a modified version of your original licence); and
 (c) the replacement licences together cover exactly the same rights as were covered by your original licence just after the assignment or resumption;
this Division applies as if your original licence (as it existed just after the assignment or resumption) had been split into the replacement licences.
Example: MGP Communications Ltd buys a spectrum licence on 1 July 2003 for $5 million. The licence specifies areas A, B, C and D. The company assigns the spectrum relating to area C. Area C represents 20% of the market value of the overall licence. $1m of the adjustable value is allocated to it and $4m is allocated to the remaining licence.
 The Australian Communications and Media Authority adjusts the licence to specify only areas A and B, and issues a new licence specifying area D.
 Area D represents 25% of the market value of the spectrum remaining in the licence. The adjustable value of the new