Document ID: chunk:federal_register_of_legislation:C2004C00927:clause:1_12:p4
Version: federal_register_of_legislation:C2004C00927
Segment Type: clause
Provision Reference: sch 1 cl 12 (pt 4/7)
Character Range: 270026–272837

income years for which you chose the "cents per kilometre" method or the "12% of original value" method for the car assuming that:
 (a) you had not chosen either of those methods for the car; and
 (b) Division 28 (car expenses) had not applied to the car; and
 (c) you used the car for the *purpose of producing assessable income:
 (i) to the extent of 20% if you used the "cents per kilometre" method; or
 (ii) to the extent of one-third if you used the "12% of original value" method.

42-260  Meaning of notional written down value

  The notional written down value of a *car is its *written down value less its *notional depreciation amount.

Subdivision 42-H—Balancing adjustment relief

Guide to Subdivision 42-H

42-265  What this Subdivision is about

      This Subdivision explains how to apply the various forms of relief that may be available when a balancing adjustment event occurs.

Table of sections

42-270 Explanatory material

Roll-over relief

42-275 Modifications of Common rule 1
42-280 Additional consequences

Offsetting

42-285 Same year relief
42-290 Later year relief

Concessional rate

42-295 Concessional rate
42-300 Working out notional income and abnormal income for the concessional rate

42-270  Explanatory material

 (1) There are 3 forms of balancing adjustment relief.

 (2) The first is in Common rule 1. If it applies, you do not have to make a balancing adjustment calculation.

 (3) The second is an alternative, or partial alternative, to including an amount in your assessable income.

 (4) The third may reduce your income tax payable in certain circumstances where a balancing adjustment amount is included in your assessable income.

Roll-over relief

42-275  Modifications of Common rule 1

 (1) The following provisions of Common rule 1 do not apply for the purposes of this Division:
 (a) section 41-40;
 (b) section 41-45.

 (2) Despite section 41-30, the transferor and the transferee must
pro-rate their depreciation deductions for the income year in which the *roll-over event occurred on the basis of the number of days in the income year each of them was its owner or *quasi-owner.

 (3) The obligation in subsection 41-50(4) applies to the transferee as if the period for keeping the notice referred to in subsection 41-50(2) were until the end of 5 years after the next *balancing adjustment event occurs for the *plant.

 (4) The obligation in subsection 41-55(5) applies to the transferee as if the period for keeping the election referred to in subsection 41‑55(2) or a copy of it were until the end of 5 years after the next *balancing adjustment event occurs for the *plant.

42-280  Additional consequences

 (1) In addition to the consequences of the roll-over set out in
section 41-30 (about the transferor's and transferee's right to