Document ID: chunk:federal_register_of_legislation:C2025C00029:section:8:p4
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 8 (pt 4/13)
Character Range: 992071–994892

below zero) by the difference between:
 (i) the original vessel's termination value; and
 (ii) the original vessel's adjustable value just before the balancing adjustment event occurred.
 (4) The amount included in your assessable income under paragraph (3)(b) is the amount of the excess mentioned in that paragraph. It is included in the second income year after the income year in which the *balancing adjustment event occurs.

40‑363  Roll‑over relief for interest realignment arrangements

Circumstances giving rise to roll‑over relief
 (1) There is roll‑over relief if:
 (a) there is a *balancing adjustment event under section 40‑295 because, in an income year, you dispose of a *depreciating asset to another entity; and
 (b) the asset is a *mining, quarrying or prospecting right; and
 (c) the disposal occurs under an *interest realignment arrangement; and
 (d) you choose to apply roll‑over relief in relation to the asset.

Choosing to apply roll‑over relief
 (2) The choice must:
 (a) be in writing; and
 (b) be made at or before the time you lodge your *income tax return for the income year in which the *balancing adjustment event occurs, or within a longer period allowed by the Commissioner.

The effect of roll‑over relief
 (3) If there is roll‑over relief under this section:
 (a) section 40‑285 does not apply to the *balancing adjustment event in relation to the asset; and
 (b) an amount is included in your assessable income if such an amount (the non‑realignment amount) would have been included under subsection 40‑285(1) if:
 (i) paragraph (a) of this subsection did not apply; and
 (ii) the *adjustable value of the *mining, quarrying or prospecting rights that you disposed of under the arrangement were taken to be the market value of the mining, quarrying or prospecting rights that you received under the arrangement; and
 (c) in working out the *cost of a mining, quarrying or prospecting right that you receive under the arrangement, if:
 (i) some or all of the cost consists of a *non‑cash benefit that you provide; and
 (ii) that benefit is a mining, quarrying or prospecting right that you disposed of under the arrangement;
  the market value of the benefit is taken to be the adjustable value of the benefit.
 (4) The amount included in your assessable income under paragraph (3)(b) is the non‑realignment amount, and it is included for the income year in which the balancing adjustment event occurred.

Meaning of interest realignment arrangement etc.
 (5) An interest realignment arrangement is an *arrangement:
 (a) that is entered into between entities:
 (i) that are undertaking jointly, or propose to undertake jointly, a project for carrying out *mining and quarrying operations; and
 (ii) that each *holds one or more *mining, quarrying or prospecting rights relating to the