Document ID: chunk:federal_register_of_legislation:C2004C01190:clause:1_3:p2
Version: federal_register_of_legislation:C2004C01190
Segment Type: clause
Provision Reference: sch 1 cl 3 (pt 2/5)
Character Range: 52881–55535

have been a reduction under subsection 42‑192(2) of the former Act as a result of that event if the asset were plant.

 (2) The amount of the reduction is the amount worked out under subsection 42‑192(2) of the former Act.

 (3) There is no reduction under subsection (1) to an amount included in your assessable income under subsection 104‑240(1) if the balancing adjustment event results in a discount capital gain under Division 115.

 (4) However, you can choose not to make a reduction under subsection (1) and instead take advantage of the discount capital gain.

 (5) Subsection (6) applies to an entity (the transferee) if there is roll‑over relief under section 40‑340 of the new Act as a result of a balancing adjustment event happening to a depreciating asset held by the transferee.

 (6) Subsections (1), (2), (3) and (4) apply also to the transferee if:
 (a) for a depreciating asset that is plant:
 (i) the transferor referred to in section 40‑340 of the new Act started to hold the plant under a contract entered into at or before 11.45 am, by legal time in the Australian Capital Territory, on 21 September 1999; or
 (ii) the transferor constructed it and the construction started at or before that time; or
 (iii) the transferor acquired it in some other way at or before that time; or
 (iv) the transferor acquired it from an entity that was working out the decline in value of the plant under subsection 40‑10(3) or 40‑12(3) of this Act and subparagraph (i), (ii) or (iii) of this paragraph applied to that entity or to the earliest successive transferor; or
 (b) for a depreciating asset that is not plant:
 (i) the transferor started to hold the asset under a contract entered into before 1 July 2001; or
 (ii) the transferor constructed it and the construction started at or before that day; or
 (iii) the transferor acquired it in some other way before that day.

Subdivision 40‑E—Low‑value and software development pools

Table of sections

40‑420 Low‑value pools under Division 42 continue
40‑425 Allocating depreciating assets to low‑value pools
40‑450 Software development pools

40‑420  Low‑value pools under Division 42 continue

 (1) A low‑value pool you created under Subdivision 42‑M of the former Act continues under the new Act as if it had been created under Subdivision 40‑E of the new Act.

 (2) For the purposes of working out the decline in value of depreciating assets in such a pool for your income year in which 1 July 2001 occurs, step 3 of the method statement in subsection 40‑440(1) of the new Act applies to the pool closing balance, worked out under section 42‑470 of the former Act, for the income year