Document ID: chunk:federal_register_of_legislation:C2025C00029:section:12:p20
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 12 (pt 20/34)
Character Range: 5125601–5128458

under subsection 40‑340(3) if:
 (a) *balancing adjustment events occur for *depreciating assets on a day (the BAE day) because of subsection 40‑295(2); and
 (b) deductions for the assets are calculated under this Subdivision; and
 (c) the entity or entities that had an interest in the assets just before the balancing adjustment events occurred (the transferor) and the entity or entities that have an interest in the assets just after the events occurred (the transferee) jointly choose the roll‑over relief; and
 (d) the condition in subsection (2) is met.
 (2) All of the *depreciating assets that, just before the *balancing adjustment events occurred, were:
 (a) *held by the transferor; and
 (b) allocated to the transferor's *general small business pool;
must be held by the transferee just after those events occurred.

328‑245  Consequences of roll‑over
 (1) The transferor does not subtract anything for the *balancing adjustment events under:
 (a) paragraph (a) of step 2 in the method statement in section 328‑200; or
 (b) subsection 328‑210(2).
 (2) Subsection 328‑215(4) does not apply to the *balancing adjustment events for the transferor.
 (3) A choice made by the transferor for a *depreciating asset under subsection 328‑175(3) (about primary production assets) applies to the transferee as if it had been made by the transferee.
 (4) Sections 328‑247 to 328‑257 have effect.

328‑247  Pool deductions
 (1) The amount that can be deducted for the transferor's *general small business pool for the income year (the BAE year) in which the *balancing adjustment events occurred under subsection 328‑190(1) or section 328‑210 for the BAE year is split equally between:
 (a) the transferor and the transferee; or
 (b) if there are 2 or more occurrences of balancing adjustment events for relevant entities for the BAE year and a roll‑over is chosen for each occurrence—the entities concerned.
Example: John and Dave operate a dry cleaning business in partnership (the transferor). The transferor is a small business entity for the relevant income year and has chosen to use this Subdivision for that year. On the 90th day of an income year, Jonathan joins the partnership. The new partnership (the transferee) is a small business entity for the income year and chooses to use this Subdivision for that year. Had there been no partnership change, a deduction of $6,600 would have been available for the transferor's general small business pool. The transferor and transferee jointly choose the roll‑over.
 The deduction available to the transferor and the transferee for the pool under section 328‑210 is $3,300 each.
 (2) The transferor cannot deduct any amount for the transferor's *general small business pool for an income year after the BAE year.

328‑250  Deductions for assets first used in BAE year
 (1) This section applies in working