Document ID: chunk:federal_register_of_legislation:C2011C00519:clause:1_1:p1
Version: federal_register_of_legislation:C2011C00519
Segment Type: clause
Provision Reference: sch 1 cl 1 (pt 1/20)
Character Range: 8960–11809

1  At the end of Part 3‑10
Add:

Division 250—Assets put to tax preferred use

Table of Subdivisions

 Guide to Division 250
250‑A Objects
250‑B When this Division applies to you and an asset
250‑C Denial of, or reduction in, capital allowance deductions
250‑D Deemed loan treatment of financial benefits provided for tax preferred use
250‑E Taxation of deemed loan
250‑F Treatment of asset when Division ceases to apply to the asset
250‑G Objections against determinations and decisions by the Commissioner

Guide to Division 250

250‑1  What this Division is about

      This Division denies or reduces certain capital allowance deductions that would otherwise be available to you in relation to an asset if the asset is put to a tax preferred use in certain circumstances.
      If the capital allowance deductions are denied or reduced, certain financial benefits in relation to the tax preferred use of the asset are assessed only to the extent of a notional gain component. This component is worked out on the basis of treating the arrangements under which the asset is put to a tax preferred use, and financial benefits are provided in relation to that tax preferred use, as a loan. Subdivision 250‑E then applies to determine the amounts that are to be assessed.

Subdivision 250‑A—Objects

Table of sections

250‑5 Main objects

250‑5  Main objects

  The main objects of this Division are:
 (a) to deny or reduce your *capital allowance deductions in respect of an asset if the asset is put to a *tax preferred use and you have insufficient economic interest in the asset; and
 (b) if your capital allowance deductions are denied or reduced, to treat the *arrangement for the tax preferred use of the asset as a loan that is taxed as a financial arrangement (on a compounding accruals basis).

Subdivision 250‑B—When this Division applies to you and an asset

Table of sections

Overall test

250‑10 When this Division applies to you and an asset
250‑15 General test
250‑20 First exclusion—small business entities
250‑25 Second exclusion—financial benefits under minimum value limit
250‑30 Third exclusion—certain short term or low value arrangements
250‑35 Exceptions to section 250‑30
250‑40 Fourth exclusion—sum of present values of financial benefits less that amount otherwise assessable
250‑45 Fifth exclusion—Commissioner determination

Tax preferred use of asset

250‑50 End user of an asset
250‑55 Tax preferred end user
250‑60 Tax preferred use of an asset
250‑65 Arrangement period for tax preferred use
250‑70 New tax preferred use at end of arrangement period if tax preferred use continues
250‑75 What constitutes a separate asset for the purposes of this Division
250‑80 Treatment of particular arrangements in the same way as leases

Financial benefits in relation to tax preferred use

250‑85 Financial benefits