Document ID: chunk:federal_register_of_legislation:C2025C00029:section:4:p21
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 4 (pt 21/37)
Character Range: 444798–447481

the *GST Act.
Note: See instead section 27‑92.
 (2) The asset's *cost is increased by an amount equal to the *increasing adjustment if the adjustment arises in the income year in which the asset's *start time occurs.
 (3) The asset's *opening adjustable value for an income year and its *cost is increased by an amount equal to the *increasing adjustment if the adjustment arises in that year and that year is after the one in which the asset's *start time occurs.

Exception: pooling
 (4) This section does not apply to:
 (a) a depreciating asset allocated to a low‑value pool or a pool under Division 328 for or in the *current year; or
 (b) *in‑house software if expenditure on the software is allocated to a software development pool for the current year; or
 (c) a project pool.

27‑92  Certain increasing adjustments can be deducted
 (1) This section applies to an entity if:
 (a) the entity can deduct amounts for a *depreciating asset under Division 40 or 328; and
 (b) the entity has an *increasing adjustment that arises under Division 129 or 132 of the *GST Act in an income year that relates directly or indirectly to the asset.
 (2) The entity can deduct the amount of the *increasing adjustment for the income year.
 (3) However, the entity cannot deduct the amount to the extent (if any) that the adjustment arises from an increase in the extent to which the activity giving rise to the adjustment is of a private or domestic nature.

27‑95  Balancing adjustment events
 (1) The *termination value of a *depreciating asset is reduced if the relevant *balancing adjustment event is a *taxable supply. The reduction is an amount equal to the *GST payable on the supply.
 (2) However, subsection (1) does not apply if the *termination value of the *depreciating asset is modified under Division 40 to be its *market value.
 (3) The *termination value of a *depreciating asset is increased if the entity that *held the asset has a *decreasing adjustment that relates directly or indirectly to that *taxable supply in the income year in which the *balancing adjustment event occurred. The increase is the amount of the decreasing adjustment.
 (4) The *termination value of a *depreciating asset is decreased if the entity that *held the asset has an *increasing adjustment that relates directly or indirectly to that *taxable supply in the income year in which the *balancing adjustment event occurred. The decrease is the amount of the increasing adjustment.
 (5) An amount is included in the assessable income of the entity that *held the asset if the entity has a *decreasing adjustment that relates directly or indirectly to that *taxable supply in a later income year.