Document ID: chunk:federal_register_of_legislation:C2005C00282:clause:2_73bm:p1
Version: federal_register_of_legislation:C2005C00282
Segment Type: clause
Provision Reference: sch 2 cl 73BM (pt 1/3)
Character Range: 27843–30499

73BM  Balancing adjustments: section 73BH plant

 (1) If:
 (a) a balancing adjustment event (within the meaning of subsection 42‑30(3) of the Income Tax Assessment Act 1997) happens in relation to a unit of section 73BH plant of an eligible company; and
 (b) one or more deductions have been allowed or are allowable to the eligible company under section 73BH for the unit for a year or years of income; and
 (c) no deduction was allowable to the eligible company under section 42‑15 of the Income Tax Assessment Act 1997 for the unit 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 42‑F of that Act as so in force, if:
 (i) the changes set out in section 73BJ were made; and
 (ii) section 42‑220A 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 allowable under both section 73BH of this Act and section 42‑15 of the Income Tax Assessment Act 1997 for a unit of section 73BH plant, the balancing adjustment provisions of Division 42 of that Act apply in a modified way: see section 42‑220A of that Act.

Increase in deduction or assessable amount where section 73BH 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 42 deduction by 1.25, subsection (3) applies.

 (3) Any amount (the eligible subsection (1) amount):
 (a) allowable as a deduction to the eligible company under subsection (1) of this section for the unit of section 73BH plant; or
 (b) included in the assessable income of the eligible company under subsection (1) of this section for the unit of section 73BH plant, where that amount is so included as a result of the application of section 42‑190 of the Income Tax Assessment Act 1997 in accordance with paragraph (1)(d) of this section;
is increased by the amount worked out using the formula:
where:

sum of all 1.25 rate notional Division 42 deductions means the sum of all notional Division 42 deductions that were multiplied by 1.25 in working out the deductions mentioned in paragraph (1)(b) for the unit of section 73BH plant.

total decline in value means the cost of the unit