Document ID: chunk:federal_register_of_legislation:C2004A00445:clause:1_7:p1
Version: federal_register_of_legislation:C2004A00445
Segment Type: clause
Provision Reference: sch 1 cl 7 (pt 1/3)
Character Range: 37785–40774

7                                        the balancing adjustment is required because of item 3 (about partial changes of ownership) in the table in subsection 380‑80(3)                                                                                        the spectrum licence's market value at the time of the *balancing adjustment event

Note: If Case 7 applies and the parties jointly elect for roll‑over relief under subsection 380‑100(2), a balancing adjustment is not required.

Subdivision 380‑E—Application of the Common rules

Table of sections

380‑95 Application of Common rules in Division 41
380‑100 Common rule 1 (roll‑over relief for related entities)

380‑95  Application of Common rules in Division 41

  These Common rules apply to your *expenditure incurred in obtaining a *spectrum licence:
 (a) Common rule 1 (roll‑over relief for related entities), but with the qualifications and modifications set out in section 380‑100;
 (b) Common rule 2 (non‑arm's length transactions), but only if that expenditure is worked out using Case 1 in the table in subsection 380‑25(2).

Note: Non‑arm's length transactions are also dealt with in section 380‑110.

380‑100  Common rule 1 (roll‑over relief for related entities)

Application of Common rule 1

 (1) Common rule 1 does not apply to a *partial realisation, or to a *replacement, of a *spectrum licence.

 (2) Roll‑over relief is also available if:
 (a) a *balancing adjustment event happens that is covered by item 3 (about partial changes in interests) in the table in subsection 380‑80(3); and
 (b) the entity or entities that held the *spectrum licence just before the change (the transferor) and the entity or entities that held the *spectrum licence just after the change (the transferee) jointly elect for roll‑over relief.

Note: For the conditions relating to the election, see section 41‑55.

Modifications of Common rule 1

 (3) Disregard subsection 41‑40(3) (about the transferee being taken to have incurred the transferor's expenditure).

Note: This is because the transferee's expenditure on the spectrum licence is dealt with in the table in subsection 380‑25(2) and is based on the transferor's unrecouped expenditure immediately before the roll‑over event.

 (4) Instead, the balancing adjustment is affected in this way:
 (a) the total of each amount (if any) that section 380‑40 or 380‑70 has included in the transferor's assessable income for an income year (because of a *partial realisation, or *replacement, of the *spectrum licence); or
 (b) if there have been 2 or more prior applications of Common rule 1—the total of each amount (if any) that section 380‑40 or 380‑70 has included in the assessable income of any of the transferors for an income year in respect of the spectrum licence;
is taken to have been included by that section in the assessable income of the transferee for that income year.

 (5) The obligation in subsection 41‑50(4) applies to the transferee as if the period for