Document ID: chunk:federal_register_of_legislation:C2025C00029:section:14
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 14
Character Range: 975990–977689

14                       The *balancing adjustment event occurs under subsection 40‑295(1B)                                                                                                       What would, apart from subsection 40‑285(3), be the asset's *adjustable value on the day the *balancing adjustment event occurs

 (3) The termination value of a *depreciating asset does not include an amount that is included in assessable income as *ordinary income under section 6‑5 or as *statutory income under section 6‑10 (except an amount that is statutory income under this Division).
Note 1: Termination value may be adjusted under Subdivision 27‑B so that any GST consequences are accounted for.
Note 2: Termination value may be reduced under section 40‑1105 to account for exploration benefits received under farm‑in farm‑out arrangements.

40‑305  Amount you are taken to have received under a balancing adjustment event
 (1) This Division applies to you as if you had received, under a *balancing adjustment event, the greater of these amounts:
 (a) the sum of the amounts you have deducted or can deduct, or has been or will be taken into account in working out an amount you can deduct because of the balancing adjustment event and any amount by which the amount so deductible was reduced because of a case described in the table in this subsection; and
 (b) the sum of the applicable amounts set out in that table:

Amount you are taken to have received under a balancing adjustment event
Item                                                                      In this case:                                                                                                   The amount is: