Document ID: chunk:federal_register_of_legislation:C2011C00519:clause:1_1:p13
Version: federal_register_of_legislation:C2011C00519
Segment Type: clause
Provision Reference: sch 1 cl 1 (pt 13/20)
Character Range: 37476–40240

the purchase, disposal or transfer of the asset to be treated as financial benefits provided in relation to the tax preferred use of the asset.

250‑100  Present value of financial benefit that has already been provided

  For the purposes of this Division, the present value of a *financial benefit at a particular time is the nominal amount or value of the financial benefit if the financial benefit has been provided before that time.

Discount rate to be used in working out present values

250‑105  Discount rate to be used in working out present values

 (1) For the purposes of section 250‑40, the discount rate to be used in working out the present value of a future amount is:
 (a) the average, expressed as a decimal fraction, of the assessed secondary market yields in respect of 10‑year non‑rebate Treasury bonds published by the Reserve Bank during the *financial year in which the relevant *arrangement period starts; or
 (b) if no assessed secondary market yield in respect of bonds of that kind was published by the Reserve Bank during the year—the decimal fraction determined by the Treasurer for the purposes of the definition of long‑term bond rate in section 2 of the Petroleum Resource Rent Tax Assessment Act 1987 in relation to the financial year in which the relevant arrangement period starts.

 (2) For the purposes of section 250‑135 and Subdivisions 250‑C and 250‑D, the discount rate to be used in working out the present value of a future amount is a rate that reflects a constant periodic rate of return (worked out on a compounding basis) on the investment in:
 (a) the asset referred to in subparagraph 250‑15(d)(i) if that subparagraph applies; or
 (b) the expenditure referred to in paragraph 250‑15(d)(ii) if that subparagraph applies;
that is implicit in the *arrangements under which the asset is *put to a tax preferred use and *financial benefits are *provided in relation to that tax preferred use.

Predominant economic interest

250‑110  Predominant economic interest

  You lack a predominant economic interest in an asset at a particular time only if one or more of the following sections apply to you and the asset at that time:
 (a) section 250‑115 (limited recourse debt test);
 (b) section 250‑120 (right to acquire asset test);
 (c) section 250‑125 (effectively non‑cancellable, long term arrangement test);
 (d) section 250‑135 (level of expected financial benefits test).

250‑115  Limited recourse debt test

 (1) You lack a predominant economic interest in an asset at a particular time if more than the allowable percentage of the cost of your acquiring or constructing the asset is financed (directly or indirectly) by a *limited recourse debt or debts.

 (2) For the purposes of subsection (1):
 (a) the