Document ID: chunk:federal_register_of_legislation:C2024C00267:section:3:p48
Version: federal_register_of_legislation:C2024C00267
Segment Type: section
Provision Reference: s 3 (pt 48/50)
Character Range: 194792–197318

means the sum of the partners' notional Division 40 deductions, and notional Division 42 deductions, (if any) for the asset that were multiplied by 1.25 in working out the old law deductions.
total decline in value means the cost of the asset less its adjustable value.

Application of Division 355
 (3A) In applying Division 355 of the new Act in relation to the asset for the income year, an R&D entity (the partner) that is a partner in the R&D partnership and is entitled to one or more new law deductions for one or more income years for the asset, is taken to have:
 (a) if the section 40‑285 amount is an amount included in the R&D partnership's assessable income—a clawback amount under section 355‑449 of the new Act for the income year; or
 (b) if the section 40‑285 amount is a deduction—a catch up amount under section 355‑468 of the new Act for the income year;
equal to the partner's proportion of the following amount:
where:
adjusted section 40‑285 amount means:
 (a) if the section 40‑285 amount is a deduction—the amount of the deduction; or
 (b) if the section 40‑285 amount is an amount included in the R&D partnership's assessable income—so much of the section 40‑285 amount as does not exceed the total decline in value.
sum of new law deductions means the sum of each partner's new law deductions mentioned in paragraph (2)(b) of this section.
total decline in value means the cost of the asset less its adjustable value.

Normal rules do not apply for the asset and the event
 (4) Section 40‑293 of the new Act, to the extent that it would otherwise apply apart from this section to the R&D partnership or its partners for the event, does not so apply to the R&D partnership and the partners for the event.
Note: Section 40‑293 of the new Act would otherwise apply for the event in a case where the partners had new law deductions.

40‑295  Later year relief
 (1) You may exclude an amount that has been included in your assessable income for plant as a result of a balancing adjustment event that occurred in your 1999‑2000 or 2000‑01 income year to the extent that you choose under section 42‑290 of the former Act to treat that amount as an amount you have deducted for the decline in value of replacement plant.
 (2) You can only make this choice for the replacement plant if:
 (a) you acquire it:
 (i) within 2 income years after the end of the income year in which the balancing adjustment event occurred; and
 (ii) in your 2001‑02 or 2002‑2003 income year; and
 (b) at the end of the income year