Document ID: chunk:federal_register_of_legislation:C2010C00685:clause:10_49a:p1
Version: federal_register_of_legislation:C2010C00685
Segment Type: clause
Provision Reference: sch 10 cl 49A (pt 1/2)
Character Range: 141254–143750

49A  Special depreciation rules for fixtures—Income Tax Assessment Act 1997

 (1) This section applies if:
 (a) a company obtains a lease relating to particular land under section 21, 22 or 23; and
 (b) at the time the lease was obtained, a unit of plant is attached to the land.

 (2) If:
 (a) immediately before the land vested in the Commonwealth under Part 2:
 (i) the part of the land to which the plant was attached was held by another entity under a quasi‑ownership right over land granted by an exempt Australian government agency; and
 (ii) the other entity was the quasi‑owner of the plant under subsection 42‑310(2) of the Income Tax Assessment Act 1997; and
 (b) on the grant of the lease referred to in paragraph (1)(a), the other entity became a sub‑lessee of the company;
then, so long as the other entity continues to hold the sub‑lease of that part of the land from the company or a successor, the other entity:
 (c) is taken to hold a quasi‑ownership right over the land granted by an exempt Australian government agency; and
 (d) is taken to satisfy paragraph 42‑310(2)(b) of that Act for the plant.

 (3) If:
 (a) subsection (2) does not apply to the plant; and
 (b) the FAC was the owner of the plant for the purposes of Division 42 of the Income Tax Assessment Act 1997 immediately before the land vested in the Commonwealth under Part 2;
that Division applies to the plant as if:
 (c) the company satisfied paragraph 42‑310(2)(b) of that Act for the plant; and
 (d) the company held a quasi‑ownership right over the land and that right was assigned to the company; and
 (e) the amount paid by the company for the grant of the lease were an amount paid for the acquisition of the lease.

Note: If, as a result, the company is the quasi‑owner of the plant, the cost of the plant to it will be determined under item 4 in the table in section 42‑65 of that Act, unless item 13 or 14 applies.

 (4) However, the Minister for Finance may make a written determination of the cost of the plant referred to in subsection (3) for the purposes of Division 42 of the Income Tax Assessment Act 1997.

Note: If a determination is made, the cost of the plant will be determined under item 13 or 14 in the table in section 42‑65 of that Act.

 (5) The FAC must give the Minister for Finance such information as the Minister for Finance requires about the application of Subdivision 42‑F of the Income Tax Assessment Act 1997 to the plant and to the FAC.

 (6) This section does not affect