Document ID: chunk:federal_register_of_legislation:C2004C00958:clause:1_9:p3
Version: federal_register_of_legislation:C2004C00958
Segment Type: clause
Provision Reference: sch 1 cl 9 (pt 3/4)
Character Range: 620924–623998

the item relates to a patent, and an amount is paid to you (as the owner or former owner of the item) for the exploitation of the invention by:                                                                                                  the amount paid to you

                                                         (a) the Commonwealth or a State; or

                                                         (b) an entity authorised by the Commonwealth or a State
  10                                                     an amount is paid to you (as the owner or former owner of the item) for infringement or alleged infringement of the patent, registered design or copyright to which the item relates                                                             the amount paid to you

Note: There can be a partial realisation of an item even after a balancing adjustment event has happened. For example, if after disposing of a patent the former owner receives damages for infringement of the patent.

373‑50  How to work out the effects of the partial realisation

 (1) You work out the effects of a *partial realisation by comparing:

 • the *amount arising from the partial realisation;

with:

 • your *unrecouped expenditure on the item immediately before the partial realisation.

 (2) If the *amount arising from the *partial realisation is less than your *unrecouped expenditure on the item, your unrecouped expenditure is reduced by that amount at the time of the *partial realisation.

 (3) On the other hand, if the *amount arising from the *partial realisation exceeds your *unrecouped expenditure on the item, then:

 (a) your unrecouped expenditure is reduced to nil at the time of the partial realisation (if it is not nil already); and

 (b) the excess is included in your assessable income for the income year of the partial realisation.

 (4) However, the amount included in your assessable income cannot exceed:

 • the total of each amount (if any) you can deduct or have deducted for the item for the *current year or an earlier income year under this Division (except Subdivision 373‑A (about registration expenditure));

reduced by:

 • the total of each amount (if any) included in your assessable income for an income year, either under this section because of a previous *partial realisation of the item, or under section 373‑65 because of a *balancing adjustment event.

Note: If you have owned the item since before the 1998‑99 income year: see subsection 373‑10(4) of the Income Tax (Transitional Provisions) Act 1997.

 (5) If some or all of the *amount arising from the *partial realisation is *ordinary income, apply this section as if the amount arising were reduced by the amount of ordinary income.

373‑55  Item of intellectual property left after partial realisation

  This Division applies as if what is left of the item after the *partial realisation were the same item of *intellectual property as before the partial realisation.

Subdivision 373‑D—Balancing adjustments

Table of sections

373‑60 When