Document ID: chunk:federal_register_of_legislation:C2004A04362:front:0:p6
Version: federal_register_of_legislation:C2004A04362
Segment Type: other
Provision Reference: 
Character Range: 13652–16202

provisions have effect for the purpose of working out under Part IIIA of the Assessment Act whether a capital gain accrues in the event of a subsequent disposal of the asset by it:

    (c)     the Authority is taken to have disposed of the asset at the changeover time for a consideration equal to the amount of that indexed cost base;

    (d)     the Authority is taken to have immediately re-acquired the asset for a consideration equal to the market value of the asset at the changeover time;

    (e)     the reference in subsection 160Z(3) of the Assessment Act to the day on which the asset was acquired by the taxpayer is taken to be a reference to the day on which the asset was actually acquired by the Authority.

"(2) If the asset is disposed of within 12 months of its acquisition by the Authority, subsection (1) has effect as if the references in that subsection to the indexed cost base to the Authority in relation to the asset were references to the cost base to the Authority in relation to the asset.

  "(3) If:

   (a)     the Authority owned an asset at the changeover time; and

     (b)     the market value of the asset at the changeover time was less than the amount that would have been the reduced cost base to the Authority in relation to the asset if the Authority had disposed of the asset at that time;

the following provisions have effect for the purpose of working out under Part IIIA of the Assessment Act whether the Authority incurred a capital loss in the event of a subsequent disposal of the asset by it:

     (c)     the Authority is taken to have disposed of the asset at the changeover time for a consideration equal to the amount of that reduced cost base;

     (d)     the Authority is taken to have immediately re-acquired the asset for a consideration equal to the market value of the asset at the changeover time.

"(4) For the purposes of this section, in the case of an asset that was acquired by the Commonwealth and transferred to the Authority for no consideration:

  (a)     the cost base to the Authority in relation to the asset; and

    (b)     the indexed cost base to the Authority in relation to the asset; and

(c) the reduced cost base to the Authority in relation to the asset; are to be worked out as if the asset had at all relevant times been an asset of the Authority and anything done by the Commonwealth in relation to the asset had been done by the Authority.

"(5) An asset of the Authority that was acquired by the Commonwealth before 20 September 1985 and transferred to