Document ID: chunk:federal_register_of_legislation:C2025C00014:section:159gg:p1
Version: federal_register_of_legislation:C2025C00014
Segment Type: section
Provision Reference: s 159GG (pt 1/3)
Character Range: 1365431–1368029

159GG  Qualifying arrangements
 (1) For the purposes of this Division, where at any time (in this subsection referred to as the relevant time) any of the following conditions is satisfied in relation to an arrangement relating to the use by a person (in this subsection referred to as the end‑user), or to the control by a person (in this subsection also referred to as the end‑user) of the use, of property owned by another person who is a party to the arrangement, being property that is or includes an item of eligible property:
 (a) the arrangement contains provision to the effect that:
 (i) if:
 (A) on the termination or expiration of the arrangement, the owner sells or otherwise disposes of the whole of the arrangement property, or part of the arrangement property that is or includes the item of eligible property, to any person; and
 (B) the owner or an associate receives in respect of the sale or disposal no consideration, or consideration of an amount less than an amount (in this subparagraph referred to as the guaranteed residual value) specified in, or ascertainable under, the provision;
  the end‑user or an associate will pay to the owner or an associate an amount equal to the guaranteed residual value, or to the amount by which the guaranteed residual value exceeds the consideration, as the case may be;
 (ii) at or after the termination or expiration of the arrangement, the whole of the arrangement property or part of the arrangement property that is or includes the item of eligible property is to be transferred (whether or not for any consideration) to the end‑user or an associate;
 (iii) the end‑user or an associate has or will have the right to purchase or to require the transfer of the whole of the arrangement property or part of the arrangement property that is or includes the item of eligible property; or
 (iv) the arrangement period in relation to the item of eligible property in relation to the arrangement is a period that exceeds 1 year and the end‑user or an associate will be liable to carry out, to expend money in respect of or to reimburse the owner or an associate for expenditure in respect of, repairs that may be required to the whole of the arrangement property or to part of the arrangement property that is or includes the item of eligible property;
 (b) the arrangement period in relation to the item of eligible property in relation to the arrangement is equal to or greater than:
 (i) where the item is an item of eligible real property—50% of the effective life of that item at the commencement of the arrangement period; or
 (ii) in