Document ID: chunk:federal_register_of_legislation:C2011C00519:clause:1_71:p1
Version: federal_register_of_legislation:C2011C00519
Segment Type: clause
Provision Reference: sch 1 cl 71 (pt 1/3)
Character Range: 126827–129240

71  Application

(1) Subject to subitems (4), (6) and (8), Division 250 applies in relation to a tax preferred use of an asset if, and only if, the tax preferred use:
 (a) starts on or after 1 July 2007; and
 (b) does not occur under a legally enforceable arrangement that was entered into before 1 July 2007.

(2) This subitem applies to an asset that is put to a tax preferred use if:
 (a) the tax preferred use starts on or after 1 July 2007; and
 (b) the tax preferred use occurs under a legally enforceable arrangement that was entered into before 1 July 2007; and
 (c) but for this subitem:
 (i) section 51AD would apply to the asset in relation to a taxpayer; or
 (ii) Division 16D would apply to the asset; and
 (d) you elect to have this subitem apply to the asset.

(3) An election under paragraph (2)(d) in relation to an asset that is put to a tax preferred use:
 (a) must be made by the day you lodge your income tax return for the income year in which the tax preferred use starts; and
 (b) must be made for the whole of the arrangement period for the tax preferred use of the asset; and
 (c) must extend to all assets that are, or are to be, put to a tax preferred use under the arrangement under which the asset is put to that use; and
 (d) is irrevocable.

(4) If subitem (2) applies:
 (a) section 51AD and Division 16D do not apply to the asset; and
 (b) Division 250 applies to the tax preferred use of the asset.

(5) This subitem applies to an asset that is put to a tax preferred use if:
 (a) the tax preferred use starts on or after 1 July 2007; and
 (b) the tax preferred use occurs under a legally enforceable arrangement that was entered into before 1 July 2007; and
 (c) immediately before 1 July 2007:
 (i) section 51AD did not apply to the asset in relation to a taxpayer; and
 (ii) Division 16D did not apply to the asset; and
 (d) the arrangement referred to in paragraph (b) is materially altered on or after 1 July 2007; and
 (e) but for this subitem and subitem (6):
 (i) section 51AD would apply to the asset in relation to a taxpayer immediately after the alteration; or
 (ii) Division 16D would apply to the asset immediately after the alteration.
For the purposes of applying paragraph (c), assume that the asset was in existence and was being put to the tax preferred use immediately before 1 July 2007.

(6) If subitem (5) applies:
 (a) section 51AD and Division 16D do not