Document ID: chunk:federal_register_of_legislation:C2010C00648:clause:1_65
Version: federal_register_of_legislation:C2010C00648
Segment Type: clause
Provision Reference: sch 1 cl 65
Character Range: 62056–63249

65  At the end of section 320‑255
Add:

 (9) Division 42 has effect in relation to an asset covered by subsection (6), (7) or (8) as if:
 (a) in relation to the sale of the asset that is taken to have occurred under that subsection:
 (i) the sale were a *balancing adjustment event; and
 (ii) the *termination value of the asset for that event were equal to the consideration for the sale; and
 (iii) the company had ceased to be the owner or *quasi‑owner of the asset at the time of the sale; and
 (b) in relation to the purchase of the asset that is taken to have occurred under that subsection:
 (i) the company had only become the owner or quasi‑owner of the asset after the purchase; and
 (ii) the asset's cost were equal to the consideration for the purchase under that subsection; and
 (iii) the company had acquired the asset from an *associate of the company.

Note: This means that, amongst other things, as a result of the transfer:
  *   the asset's cost for the purposes of working out a deduction under Division 42 is reset; and
  *   the company's assessable income might be adjusted under section 42‑30 if the transfer is a transfer to the company's segregated exempt assets.