Document ID: chunk:federal_register_of_legislation:C2025C00029:section:8:p25
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 8 (pt 25/30)
Character Range: 4222591–4225224

(a) a *member of the tax preferred end user group has, or will have:
 (i) a right, obligation or contingent obligation to purchase or acquire the asset or a legal or equitable interest in the asset; or
 (ii) a right to require the transfer of the asset or a legal or equitable interest in the asset; and
 (b) the consideration for the purchase, acquisition or transfer is not fixed as the *market value of the asset at the time of the purchase, acquisition or transfer.
To avoid doubt, this section does not apply to the asset merely because your interest in the asset is one that ceases to exist after the passage of a particular period of time.

250‑125  Effectively non‑cancellable, long term arrangement test
 (1) You lack a predominant economic interest in an asset at a particular time if:
 (a) any *arrangement that relates to:
 (i) the *tax preferred use of the asset; or
 (ii) the *financial benefits to be *provided by the *members of the tax preferred sector in relation to the tax preferred use of the asset;
  is *effectively non‑cancellable (see section 250‑130); and
 (b) the *arrangement period for the tax preferred use of the asset is:
 (i) greater than 30 years; or
 (ii) if the arrangement period is less than or equal to 30 years—75% or more of that part of the asset's *effective life that remains when the tax preferred use of the asset starts.
 (2) Disregard section 40‑102 in working out the asset's *effective life for the purposes of subparagraph (1)(b)(ii).

250‑130  Meaning of effectively non‑cancellable arrangement
 (1) An *arrangement that relates to *financial benefits to be *provided by a *member of the tax preferred sector in relation to the tax preferred use of an asset is effectively non‑cancellable if:
 (a) the arrangement can be cancelled only with:
 (i) your permission; or
 (ii) the permission of a *connected entity of yours; or
 (iii) an agent or entity acting on your behalf (or on behalf of a connected entity of yours); or
 (b) the arrangement can be cancelled without the permission of an entity referred to in paragraph (a) but, if the arrangement were cancelled, the member of the tax preferred sector or another member of the tax preferred sector:
 (i) would be required to enter into a new arrangement for the *provision of financial benefits in relation to the tax preferred use of the asset; or
 (ii) would incur a penalty and the magnitude of the penalty would be such as to discourage cancellation.
 (2) For these purposes, if a *member of the tax preferred sector defaults under an *arrangement and the arrangement is cancelled, the arrangement is to be taken to have been