Document ID: chunk:federal_register_of_legislation:C2025C00029:section:4
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 4
Character Range: 5886990–5889917

4                                                            there are one or more *retained cost base assets in the set, and the total (the retained cost base total) of their respective *tax cost setting amounts is less than the available amount      the one or more retained cost base assets are not taken into account under paragraph 705‑35(1)(b);                                                                                the available amount is reduced by the retained cost base total
                                                                                                                                                                                                                                                            the *tax cost setting amount of each remaining asset in the set is worked out by applying item 1 or 2, as appropriate, of this table on the basis that:
                                                                                                                                                                                                                                                            (a) the available amount is reduced by the retained cost base total; and
                                                                                                                                                                                                                                                            (b) the one or more retained cost base assets are otherwise ignored

Note 1: Paragraph 705‑35(1)(b) reduces the allocable cost amount by the tax cost setting amounts of retained cost base assets. Item 4 of the table in this subsection excludes the application of paragraph 705‑35(1)(b) to retained cost base assets in the set; this in turn may affect the application of CGT event L3.
Note 2: Paragraph 705‑35(1)(c) then allocates the reduced allocable cost amount among the joining entity's reset cost base assets.
 (6) In applying subsections (3), (4) and (5) of this section, disregard an asset covered by subsection 705‑35(2) (assets that do not have a tax cost setting amount).
 (7) This section does not affect the application of sections 705‑40, 705‑45 and 705‑47 (which adjust the tax cost setting amount for a reset cost base asset).

How to work out the allocable cost amount

705‑60  What is the joined group's allocable cost amount for the joining entity?
  Work out the joined group's allocable cost amount for the joining entity in this way:

Working out the joined group's allocable cost amount for the joining entity
Step                                                                         What the step requires                                                                                                                                                                                                         Purpose of the step