Document ID: chunk:federal_register_of_legislation:C2004C01190:clause:2_244:p3
Version: federal_register_of_legislation:C2004C01190
Segment Type: clause
Provision Reference: sch 2 cl 244 (pt 3/6)
Character Range: 166558–169304

by the purchaser solely to derive assessable income from the provision of office or residential accommodation.

Subdivision 58‑B—Calculating decline in value of privatised assets under Division 40

Table of sections

58‑60 Purpose of rules in this Subdivision
58‑65 Choice of method to work out cost of privatised asset
58‑70 Application of Division 40
58‑75 Meaning of notional written down value
58‑80 Meaning of undeducted pre‑existing audited book value
58‑85 Pre‑existing audited book value of depreciating asset
58‑90 Method for transition entity

58‑60  Purpose of rules in this Subdivision

  This Subdivision sets out rules that affect the way in which the *transition entity or the purchaser work out the decline in value of, and balancing adjustments for, *privatised assets under Division 40 after the *transition time or the *acquisition time.

58‑65  Choice of method to work out cost of privatised asset

 (1) The *transition entity or the purchaser has a choice to work out the first element of the *cost of each *privatised asset.

 (2) The choice is to use either:
 (a) the *notional written down value of the asset; or
 (b) the *undeducted pre‑existing audited book value (if any) of the asset.

 (3) The choice must be made:
 (a) for the *transition entity—by the day on which the transition entity lodges its income tax return for the *transition year; or
 (b) for the purchaser—by the day on which the purchaser lodges the purchaser's income tax return for the *acquisition year;
or within a further period allowed by the Commissioner.

 (4) The choice, once made, cannot be changed.

58‑70  Application of Division 40

Application of Division 40

 (1) The *transition entity and the purchaser work out the decline in value of, and the effect of a *balancing adjustment event occurring for, each *privatised asset using Division 40 (Capital allowances) as if the asset had been acquired under a contract entered into on or after 1 July 2001.

Entity sale situation

 (2) Division 40 applies to a *privatised asset *held by the *transition entity as if the asset had not been used, or *installed ready for use, for any purpose before the *transition time.

 (3) The first element of the *cost to the *transition entity at the *transition time is the *notional written down value of the asset or the *undeducted pre‑existing audited book value of the asset (depending on the choice made for the asset).

 (4) No amount incurred before the *transition time is included in the second element of the *cost of a *privatised asset.

Asset sale situation

 (5) The first element of the *cost of a *privatised asset to the purchaser at the *acquisition time is the sum of:
 (a) the *notional written down value of the asset or