Document ID: chunk:federal_register_of_legislation:C2004A00844:clause:1_10:p11
Version: federal_register_of_legislation:C2004A00844
Segment Type: clause
Provision Reference: sch 1 cl 10 (pt 11/13)
Character Range: 48314–51053

grant or assign an interest in an item of *intellectual property, subsection (2) applies to you as if you had stopped *holding part of the item.

40‑120  Replacement spectrum licences

 (1) If:
 (a) some (but not all) of a *spectrum licence you *hold is assigned or resumed; and
 (b) your original licence is replaced by one or more other spectrum licences (possibly including a modified version of your original licence); and
 (c) the replacement licences together cover exactly the same rights as were covered by your original licence just after the assignment or resumption;
this Division applies as if your original licence (as it existed just after the assignment or resumption) had been split into the replacement licences.

Example: MGP Communications Ltd buys a spectrum licence on 1 July 2003 for $5 million. The licence specifies areas A, B, C and D. The company assigns the spectrum relating to area C. Area C represents 20% of the market value of the overall licence. $1m of the adjustable value is allocated to it and $4m is allocated to the remaining licence.

 The Australian Communication Authority adjusts the licence to specify only areas A and B, and issues a new licence specifying area D.

 Area D represents 25% of the market value of the spectrum remaining in the licence. The adjustable value of the new licence is therefore $1m and the adjustable value of the original (modified) licence is $3m.

 (2) If a *spectrum licence you *hold is replaced by 2 or more spectrum licences (possibly including a modified version of your original licence) that together cover exactly the same rights as your original licence, this Division applies as if the original licence had been split into the replacement licences.

40‑125  Merging depreciating assets

  If a *depreciating asset or assets that you *hold is or are merged into another depreciating asset, this Division applies as if you had stopped holding the original asset or assets and started holding the merged asset.

Note 1: For the cost of the merged asset, see section 40‑210.

Note 2: A balancing adjustment event does not occur just because you merge depreciating assets: see section 40‑295.

40‑130  Choices

 (1) A choice you can make under this Division about a *depreciating asset must be made:
 (a) by the day you lodge your *income tax return for the income year to which the choice relates; or
 (b) within a further time allowed by the Commissioner.

 (2) Your choice, once made, applies to that income year and all later income years.

Exception: recalculating effective life

 (3) However, subsection (2) does not apply to a choice to recalculate the *effective life of a *depreciating asset under section 40‑110.

40‑135  Certain anti‑avoidance