Document ID: chunk:federal_register_of_legislation:C2025C00029:section:1:p7
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 1 (pt 7/35)
Character Range: 4077435–4080060

to have been disposed of by the *notional buyer by way of sale back to the *notional seller, and to have been acquired by the *notional seller, at the end of the *arrangement.
 (3) The consideration for the sale of the property by the *notional buyer, and the cost of the acquisition of the property by the *notional seller, are each taken to be equal to the *market value of the property at the end of the *arrangement.
 (4) Subsection (5) applies where the property is a *car and if it:
 (a) had been bought from the *notional seller, when this Division first applied to an *arrangement in respect of the car, by the *notional buyer for a price equal to the notional loan principal; and
 (b) had been first used by the notional buyer for any purpose in the *financial year in which that time occurred;
the cost of the car, for the purpose of working out its decline in value for that person under Division 40, would have been limited by section 40‑230.
 (5) Where an associate of the *notional buyer acquires the *car, the *cost of the car for the purposes of the application of Division 40 to the associate is taken to be whichever is the lesser of:
 (a) the sum of:
 (i) the amount that would have been the *adjustable value of the car at that time for the purposes of the application of that Division to the notional buyer if the notional buyer were not taken under this Division to have disposed of the car; and
 (ii) any amount that is included in the notional buyer's assessable income under section 40‑285 because the notional buyer is taken to have disposed of the car; or
 (b) the cost of the acquisition of the car by the associate.

Subdivision 240‑G—Adjustments if total amount assessed to notional seller differs from amount of interest

Guide to Subdivision 240‑G

240‑100  What this Subdivision is about
      This Subdivision provides for adjustments if the sum of the amounts included in the notional seller's assessable income are greater or less than the interest, worked out at the end of the arrangement, for the notional loan.

Table of sections

Operative provisions
240‑105 Adjustments for notional seller
240‑110 Adjustments for notional buyer

Operative provisions

240‑105  Adjustments for notional seller
 (1) This section applies at the end of the *arrangement.
 (2) If the sum of:
 (a) all amounts (other than *termination amounts) that were paid or payable to the *notional seller under the *arrangement; and
 (b) any termination amounts paid or payable to the notional seller;
exceeds the amount worked out using the formula in subsection (4), the excess is included in the notional seller's