Document ID: chunk:federal_register_of_legislation:C2010C00690:clause:1_4:p5
Version: federal_register_of_legislation:C2010C00690
Segment Type: clause
Provision Reference: sch 1 cl 4 (pt 5/8)
Character Range: 39363–42189

so that they do equal the amount worked out under subsection (6).

Post‑leaving time proportion of total arrangement assessable income

 (6) The amount is worked out using the formula:
where:

post‑leaving time services proportion has the same meaning as in subsection (4).

total arrangement assessable income means the total of the amounts that, ignoring this Part, would be included in the separating entity's assessable income for amounts derived by it under the arrangement for all income years.

701‑80  Accelerated depreciation

 (1) This section has effect for the head company core purposes when the entity becomes a *subsidiary member of the group.

Object

 (2) The object of this section is to preserve any entitlement to accelerated depreciation for assets that become those of the *head company because subsection 701‑1(1) (the single entity rule) applies when the entity becomes a *subsidiary member of the group. This is only to apply where the asset's *tax cost setting amount is not more than the entity's *terminating value for the asset.

Section applies to certain depreciating assets

 (3) This section applies if:
 (a) the entity *acquired a *depreciating asset at or before 11.45 am, by legal time in the Australian Capital Territory, on 21 September 1999 and held the asset continuously until the entity became a *subsidiary member of the group; and
 (b) the *tax cost setting amount that applies in relation to the asset for the purposes of section 701‑10 when it becomes an asset of the *head company because subsection 701‑1(1) (the single entity rule) applies is not more than the entity's *terminating value for the asset.

Preservation of accelerated depreciation

 (4) While the asset is held by the *head company under subsection 701‑1(1) (the single entity rule), the decline in its value under Division 40 is worked out by replacing the component in the formula in subsection 40‑70(1) or 40‑75(1) that includes the asset's *effective life with the rate that would apply under subsection 42‑160(1) or 42‑165(1) of this Act if it had not been amended by the New Business Tax System (Capital Allowances) Act 2001.

701‑85  Other exceptions etc. to the rules

  The operation of each provision of this Division is subject to any provision of this Act that so requires, either expressly or impliedly.

Note: An example of such a provision is Division 707 (about the transfer of certain losses to the head company of a consolidated group). That Division modifies the effect that the inheritance of history rule in section 701‑5 would otherwise have.

[The next Division is Division 703.]

Division 703—Consolidated groups and their members

Guide to Division 703

703‑1  What this Division is about

      A consolidated group and a consolidatable group each consists of a head company