Document ID: chunk:federal_register_of_legislation:C2011C00519:clause:1_2:p3
Version: federal_register_of_legislation:C2011C00519
Segment Type: clause
Provision Reference: sch 1 cl 2 (pt 3/21)
Character Range: 61133–63872

it were a *depreciating asset; or
 (iii) would be a privatised asset if the asset were a depreciating asset and paragraphs 58‑5(2)(a) and 58‑5(4)(a) were not limited to acquisitions of depreciating assets that occurred on or after 1 July 2001.
The relevant percentage is the *disallowed capital allowance percentage if section 250‑150 applies. Otherwise it is 100%.

Note: See section 250‑180 for how to work out the end value of the asset.

Financial benefits only subject to deemed loan treatment to the extent to which they represent a return on investment

 (3) The *financial benefit is subject to deemed loan treatment only to the extent to which it reasonably represents a return of, or on, an investment in the asset (as distinct, for example, from representing consideration for the provision of services or the recovery of production costs), having regard to:
 (a) the *market value of the asset; and
 (b) the discount rate applicable under subsection 250‑105(2); and
 (c) your costs in relation to funding your interest in the asset; and
 (d) any other relevant matter.
The regulations may provide rules to be applied in determining the extent to which a financial benefit reasonably represents a return of or on an investment in the asset.

Only financial benefits provided after Division starts applying to you and the asset

 (4) If the *tax preferred use of the asset starts before this Division starts applying to you and the asset, only *financial benefits provided after this Division starts applying to you and the asset are subject to deemed loan treatment.

250‑165  Financial arrangement

 (1) You have a financial arrangement if you have, under an *arrangement:
 (a) a *cash settlable legal or equitable right to receive a *financial benefit; or
 (b) a cash settlable legal or equitable obligation to provide a financial benefit; or
 (c) a combination of one or more such rights and/or one or more such obligations;
unless:
 (d) you also have under the arrangement one or more legal or equitable rights to receive something and/or one or more legal or equitable obligations to provide something; and
 (e) for one or more of the rights and/or obligations covered by paragraph (d):
 (i) the thing that you have the right to receive, or the obligation to provide, is not a financial benefit; or
 (ii) the right or obligation is not cash settlable; and
 (f) the one or more rights and/or obligations covered by paragraph (e) are not insignificant in comparison with the right, obligation or combination covered by paragraph (a), (b) or (c).
The right, obligation or combination covered by paragraph (a), (b) or (c) constitutes the financial arrangement.

 (2) A right you have to receive, or an obligation you have to