Document ID: chunk:federal_register_of_legislation:C2025C00029:section:12:p23
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 12 (pt 23/43)
Character Range: 4003487–4006411

*financial benefits you have provided under the *financial arrangement;

                  Note: This would include financial benefits you provide in relation to the transfer or cessation (see paragraph 230‑60(1)(c)).

                (b) the total of the amounts that have been included in your assessable income, because of circumstances that have occurred before the transfer or cessation, as gains from the arrangement;
                (c) the total of the other amounts that would have been included in your assessable income, because of circumstances that have occurred before the transfer or cessation, as gains from the arrangement if all your gains from the arrangement were assessable;

                  Note: The gains from the arrangement here include amounts of exempt income or non‑assessable non‑exempt income.

                (d) the total of the amounts that will be included in your assessable income after the transfer or cessation because of a balancing adjustment under subitems 104(12) to (18) of the Tax Laws Amendment (Taxation of Financial Arrangements) Act 2009 to the extent to which those amounts are attributable to the arrangement.
                (e) the total of the amounts that will be included in your assessable income after the transfer or cessation because of sections 230‑160 and 230‑165 to the extent to which those amounts are attributable to the arrangement.

           Step 3. Compare the amount obtained under step 1 (the step 1 amount) with the amount obtained under step 2 (the step 2 amount). If the step 1 amount exceeds the step 2 amount, an amount equal to the excess is taken, as a balancing adjustment, to be a gain you make from the *financial arrangement for the purposes of this Division. If the step 2 amount exceeds the step 1 amount, an amount equal to the excess is taken, as a balancing adjustment, to be a loss that you make from the arrangement. If the step 1 amount and the step 2 amount are equal, no balancing adjustment is made.

Proportionate transfer of all rights and/or obligations under financial arrangement
 (2) If subparagraph 230‑435(1)(c)(i) applies, you make the balancing adjustment by applying the method statement in subsection (1) but reduce:
 (a) the amounts referred to in step 1; and
 (b) the amounts referred to in step 2;
by applying the proportion referred to in subparagraph 230‑435(1)(c)(i) to them.

Transfer of specifically identified right or obligation under financial arrangement
 (3) If subparagraph 230‑435(1)(c)(ii) applies, you make the balancing adjustment by applying the method statement in subsection (1) as if the references to:
 (a) the amounts referred to in step 1; and
 (b) the amounts referred to in step 2;
were references to those amounts to the extent to which they are reasonably attributable to the right or obligation referred to in subparagraph 230‑435(1)(c)(ii).

Proportionate transfer of specifically