Document ID: chunk:federal_register_of_legislation:C2010C00605:clause:9_2:p5
Version: federal_register_of_legislation:C2010C00605
Segment Type: clause
Provision Reference: sch 9 cl 2 (pt 5/5)
Character Range: 138181–139710

time of the acquisition, controlled (for value shifting purposes) the parties to the acquisition; and
 (c) that entity was also the entity whose control (for value shifting purposes) resulted in the control test being satisfied in respect of each previous acquisition or cessation involving a new asset holder; and
 (d) the following amount:
 (i) the asset's adjustable value (the roll‑over adjustable value) just before the acquisition, worked out on the assumption that every previous new asset holder had acquired the asset for the asset's roll‑over adjustable value, worked out under subsection (3) or (5) or this subsection, just before it did so;
  is less than:
 (ii) the asset's cost to the new asset holder;
then the consequences in subsection (8) occur.

 (8) The consequences are as follows:
 (a) while the asset is held by the new asset holder, for the purpose of working out deductions for the asset's decline in value under Division 40 of the Income Tax Assessment Act 1997, the acquisition by the new asset holder is taken to have been for an amount equal to the asset's roll‑over adjustable value asset just before the acquisition; and
 (b) if a balancing adjustment event occurs for the asset and:
 (i) the deductions for its decline in value up to that time worked out on the basis in paragraph (a);
  are less than:
 (ii) the deductions that would otherwise have been worked out;
  then the shortfall is allowable as a deduction to the new asset holder for the income year in which it ceases to hold the asset.