Document ID: chunk:federal_register_of_legislation:C2025C00014:section:51ad:p4
Version: federal_register_of_legislation:C2025C00014
Segment Type: section
Provision Reference: s 51AD (pt 4/10)
Character Range: 339622–342155

and used or held for use, by a person if:
 (a) the property was first used or held for use by the person at a time within 6 months before the acquisition of the property by the taxpayer; and
 (b) at that time there was in existence an arrangement that the property would be sold to another person and leased by that person to the first‑mentioned person.
 (7) Where:
 (a) the end‑user consists of all or any of the partners in a partnership; and
 (b) a condition of paragraph (4)(a) or (b), as the case may be, is satisfied in relation to any of the partners in the partnership;
that condition shall be taken to be satisfied in relation to all the partners in the partnership.
 (8) This section does not apply to property, in relation to a taxpayer, unless the whole or a predominant part of the cost of the acquisition or construction, as the case may be, of the property by the taxpayer is financed directly or indirectly by a debt or debts (which debt is, or debts are, referred to in this subsection as the non‑recourse debt) and the rights of the creditor or creditors as against the taxpayer in the event of default in the repayment of principal or payment of interest:
 (a) are limited wholly or predominantly to any or all of the following:
 (i) rights (including the right to moneys payable) in relation to any or all of the following:
 (A) the property or the use of the property;
 (B) goods produced, supplied, carried, transmitted or delivered, or services provided, by means of the property;
 (C) the loss or disposal of the whole or a part of the property or of the taxpayer's interest in the property;
 (ii) rights in respect of a mortgage or other security over the property;
 (iii) rights arising out of any arrangement relating to the financial obligations of the end‑user of the property towards the taxpayer, being financial obligations in relation to the property;
 (b) are in the opinion of the Commissioner capable of being so limited, having regard to either or both of the following:
 (i) the assets of the taxpayer;
 (ii) any arrangement to which the taxpayer is a party; or
 (c) where paragraphs (a) and (b) do not apply—are limited by reason that not all of the assets of the taxpayer (not being assets that are security for debts of the taxpayer other than the non‑recourse debt) would be available for the purpose of the discharge of the whole of the non‑recourse debt (including the payment of interest) in the event of any action or actions by the creditor or creditors against the taxpayer arising out