Document ID: chunk:federal_register_of_legislation:C2004C00927:clause:1_12:p1
Version: federal_register_of_legislation:C2004C00927
Segment Type: clause
Provision Reference: sch 1 cl 12 (pt 1/7)
Character Range: 262212–265219

12                       that is lost or destroyed                                                                                                                                                                                                        the amount or value received or receivable under an insurance policy or otherwise for the loss or destruction                                              • car limit (42-215)

Note 1: Section 42-70 increases the cost of a car you acquire at a discount in certain circumstances.

Note 2: Section 42-330 sets out the circumstances in which a partial change of ownership results in a balancing adjustment event.

42-210  Adjustment: non-arm's length transactions

 (1) Common rule 2 applies for the purpose of working out the *termination value of *plant.

 (2) However, that Common rule has a different application for depreciation purposes in 2 respects:
 (a) it only applies to disposals by sale; and
 (b) instead of requiring the party disposing of the property to have incurred capital expenditure, it is taken to require that party to have incurred a *cost.

42-215  Adjustment: car depreciation limit

  For a *car the *cost of which was worked out by applying section 42‑80 (Car depreciation limit), adjust the value by multiplying it by the fraction:

where:

CDL is the *car depreciation limit for the *car for the *financial year in which you first used it for any purpose.

original cost is the *cost of the *car (ignoring the *car depreciation limit).

42-220  Plant used for research and development

 (1) The amounts referred to in paragraph 42-190(2)(a) are increased if you have deducted or can deduct an amount for the *plant under section 73B of the Income Tax Assessment Act 1936. However, this subsection does not apply if subsection (3) applies.

 (2) The increase for *plant to which subsection (1) applies is the difference between:
 (a) its cost under section 73B, ignoring subsection 73B(6); and
 (b) its written down value under that section.

Note: Subsection 73B(6) imposed a ceiling of $10,000,000 on the cost of certain pilot plant for research and development purposes.

 (3) The amounts referred to in paragraph 42-190(2)(a) are increased if you acquired the *plant under a disposal to which Common rule 1 or section 73E of the Income Tax Assessment Act 1936 (roll-over relief) applied and:
 (a) the transferor had deducted or could deduct an amount for the plant under section 73B of that Act; or
 (b) your acquisition of the plant was the last of 2 or more successive transfers to which Common rule 1 or section 73E applied and any of the prior transferors had deducted or could deduct an amount for the plant under section 73B.

 (4) The increase for *plant to which subsection (3) applies is worked out using the formula:

where:

transferor's original cost means:
 (a) the *plant's cost; or
 (b) if paragraph (3)(b) applies—the plant's cost to the earliest successive transferor;
under section 73B, ignoring subsection