Document ID: chunk:federal_register_of_legislation:C2012C00706:clause:3_6
Version: federal_register_of_legislation:C2012C00706
Segment Type: clause
Provision Reference: sch 3 cl 6
Character Range: 70082–72468

6  After section 701‑61
Insert:

701‑63  Asset forming part of goodwill, right to future income, etc.
 (1) Subsection (2) applies if an entity (the joining entity) became a subsidiary member of a *consolidated group at a time (the joining time).
 (2) For the purposes of this Part (other than this section):
 (a) treat goodwill of a business of the joining entity as a single asset; and
 (b) treat an asset of that business of the joining entity that is an *asset forming part of goodwill as being part of that single asset; and
 (c) as a result of paragraph (b), do not treat an asset of that business of the joining entity that is an asset forming part of goodwill as a separate asset.
 (3) An asset forming part of goodwill means any of the following:
 (a) an intangible asset, the value of which is attributable to expected future profits from *life insurance policies or *general insurance policies;
 (b) a customer relationship asset, know‑how asset or other accounting intangible asset, that is not any of the following:
 (i) a *CGT asset;
 (ii) a *revenue asset;
 (iii) a *depreciating asset;
 (iv) *trading stock;
 (v) a thing that is or is part of a *Division 230 financial arrangement;
 (vi) goodwill;
 (vii) an excluded asset for the purposes of section 705‑35;
 (c) a *non‑deductible right to future income.
 (4) A non‑deductible right to future income is a *right to future income that is not an *unbilled income asset.
 (5) A right to future income is a valuable right (including a contingent right) to receive an amount for the performance of work or services or the provision of goods if:
 (a) the valuable right forms part of a contract or agreement; and
 (b) the *market value of the valuable right (taking into account all the obligations and conditions relating to the right) is greater than nil; and
 (c) the valuable right is neither a *Division 230 financial arrangement nor part of a Division 230 financial arrangement.
 (6) An asset that is a *right to future income is an unbilled income asset if:
 (a) the asset:
 (i) is in respect of work (but not goods) that has been performed, or partially performed, by an entity for another entity; or
 (ii) is in respect of goods (other than *trading stock) or services that have been provided, by an entity to another entity; and
 (b) a recoverable debt has not yet arisen in respect of the work, goods or services.