Document ID: chunk:federal_register_of_legislation:C2005C00282:clause:2_73bf:p1
Version: federal_register_of_legislation:C2005C00282
Segment Type: clause
Provision Reference: sch 2 cl 73BF (pt 1/3)
Character Range: 66053–68729

73BF  Balancing adjustments: section 73BA depreciating assets

 (1) If:
 (a) a balancing adjustment event (within the meaning of section 40‑295 of the Income Tax Assessment Act 1997) happens in relation to a section 73BA depreciating asset of an eligible company; and
 (b) one or more deductions have been allowed or are allowable to the eligible company under section 73BA or 73BH for the asset for a year or years of income, or would have been so allowed or allowable if the company had not chosen a tax offset under section 73BI; and
 (c) no deduction:
 (i) is allowable to the eligible company under section 40‑25 of the Income Tax Assessment Act 1997 for the asset for any year of income; or
 (ii) was allowable to the eligible company under section 42‑15 of the Income Tax Assessment Act 1997, as in force before its repeal by the New Business Tax System (Capital Allowances) Act 2001, for the asset for any year of income; and
 (d) a deduction would be allowable to the eligible company, or an amount would be included in the eligible company's assessable income, in respect of the balancing adjustment event under Subdivision 40‑D of that Act if:
 (i) the changes set out in section 73BC were made; and
 (ii) section 40‑292 of the Income Tax Assessment Act 1997 and this section (other than this paragraph) had not been enacted;
then the deduction mentioned in paragraph (d) is allowable to the eligible company, or the amount mentioned in paragraph (d) is included in the eligible company's assessable income, under this section for the year of income in which the balancing adjustment event occurs.

Note: If deductions have been allowed etc. under both section 73BA or 73BH of this Act and section 40‑25 of the Income Tax Assessment Act 1997 for a section 73BA depreciating asset, the balancing adjustment provisions of Division 40 of that Act apply in a modified way: see section 40‑292 of that Act.

Increase in deduction or assessable amount where section 73BA deductions allowable at 1.25 rate

 (2) However, if at least one of the deductions mentioned in paragraph (1)(b) was worked out by multiplying a notional Division 40 deduction or a notional Division 42 deduction by 1.25, subsection (3) applies.

 (3) Any amount (the subsection (1) amount) allowable as a deduction to, or included in the assessable income of, the eligible company under subsection (1) of this section for the section 73BA depreciating asset is increased by the amount worked out using the formula:
where:

adjusted subsection (1) amount means:
 (a) if the subsection (1) amount is a deduction—the amount of the deduction; or
 (b) if the subsection (1) amount is an amount included in