Document ID: chunk:federal_register_of_legislation:C2004A00844:clause:1_2:p5
Version: federal_register_of_legislation:C2004A00844
Segment Type: clause
Provision Reference: sch 1 cl 2 (pt 5/5)
Character Range: 75721–78129

or a depreciating asset that was merged into the current asset, or had it *installed ready for use, for a purpose other than a *taxable purpose.

 (4) The further reduction is such amount as is reasonable having regard to the extent of the use referred to in paragraph (3)(b).

Exception: mining, quarrying or prospecting information

 (5) This section does not apply to *mining, quarrying or prospecting information.

40‑295  Meaning of balancing adjustment event

 (1) A balancing adjustment event occurs for a *depreciating asset if:
 (a) you stop *holding the asset; or
 (b) you stop using it, or having it *installed ready for use, for any purpose and you expect never to use it, or have it installed ready for use, again; or
 (c) you have not used it and:
 (i) if you have had it installed ready for use—you stop having it so installed; and
 (ii) you decide never to use it.

Note: A balancing adjustment event occurs under paragraph 40‑295(1)(a) when you start holding a depreciating asset as trading stock.

 (2) A balancing adjustment event occurs for a *depreciating asset if:
 (a) for any reason, a change occurs in the *holding of, or in the interests of entities in, the asset; and
 (b) the entity or one of the entities that held the asset before the change has an interest in it after the change; and
 (c) the asset was a partnership asset before the change or becomes one as a result of the change.

 (3) However, a balancing adjustment event does not occur for a *depreciating asset merely because you split it into 2 or more depreciating assets or you merge it with one or more other depreciating assets.

Note: A balancing adjustment event will occur if you stop holding part of a depreciating asset.

40‑300  Meaning of termination value

 (1) The termination value of a *depreciating asset is worked out as at the time when the *balancing adjustment event occurs. It is:
 (a) if an item in the table in subsection (2) applies—the amount specified in that item; or
 (b) otherwise—the amount you are taken to have received under section 40‑305 for the asset.

 (2) If more than one item applies, use the value under the last applicable item.

Termination value table
Item                     For this balancing adjustment event:                                                                                                                                     The termination value is: