Document ID: chunk:federal_register_of_legislation:C2011C00519:clause:1_1:p16
Version: federal_register_of_legislation:C2011C00519
Segment Type: clause
Provision Reference: sch 1 cl 1 (pt 16/20)
Character Range: 44623–47295

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 cancelled without the permission of an entity referred to in paragraph (1)(a).

250‑135  Level of expected financial benefits test

Effective guarantee or indemnity for value of asset

 (1) You lack a predominant economic interest in an asset at a particular time if the asset has a *guaranteed residual value at that time.

Likely financial benefits exceeding 70% limit

 (2) You also lack a predominant economic interest in an asset at a particular time if, at that time:
 (a) the *arrangement under which the asset is *put to the tax preferred use (either alone or together with any other arrangement in relation to the *tax preferred use of the asset or the *provision of *financial benefits in relation to the tax preferred use of the asset) is a *debt interest; or
 (b) the sum of the present values of the *expected financial benefits that *members of the tax preferred sector have provided, or are or are reasonably likely to provide, to you (or a *connected entity) in relation to the tax preferred use of the asset exceeds 70% of:
 (i) the *market value of the asset if subparagraph 250‑15(d)(i) applies; or
 (ii) so much of the market value of the asset as is attributable to the expenditure referred to subparagraph 250‑15(d)(ii)