Document ID: chunk:federal_register_of_legislation:C2025C00029:section:12:p22
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 12 (pt 22/34)
Character Range: 5130706–5133556

(a) the transferor started to use, or have *installed ready for use, an asset of a kind mentioned in paragraph 328‑180(1)(b) during the BAE year; and
 (b) a *balancing adjustment event occurs for that asset before the BAE day.
Note: This threshold may be affected by section 328‑180 (about temporary increased access to accelerated depreciation) or 328‑181 (about temporary full expensing) of the Income Tax (Transitional Provisions) Act 1997.
 (5) The transferee cannot deduct anything for the asset for the BAE year, and subsection 328‑215(4) does not apply to the transferee in relation to the asset.

328‑253  Deductions for cost addition amounts
 (1) This section applies in working out the amount that the transferor or transferee can deduct for the BAE year under subsection 328‑180(2) or 328‑190(3) for expenditure incurred by the transferor or transferee during the BAE year that is included in the second element of the *cost of a depreciating asset.

Expenditure incurred by transferor
 (2) If the expenditure was incurred by the transferor, the amount that can be deducted under subsection 328‑180(2) or 328‑190(3) 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.

Expenditure incurred by transferee
 (3) If the expenditure was incurred by the transferee:
 (a) the transferor cannot deduct anything for the expenditure for the BAE year; and
 (b) the amount that can be deducted under subsection 328‑180(2) or 328‑190(3) for the expenditure for the BAE year is:
 (i) deductible by the transferee; or
 (ii) 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—split equally between the entities concerned.

Special rule for expenditure on assets costing less than $1,000
 (4) Subsection (5) applies if:
 (a) the transferor incurred the expenditure in relation to an asset of a kind mentioned in paragraph 328‑180(1)(b); and
 (b) a *balancing adjustment event occurs for that asset before the BAE day.
Note: This threshold may be affected by section 328‑180 (about temporary increased access to accelerated depreciation) or 328‑181 (about temporary full expensing) of the Income Tax (Transitional Provisions) Act 1997.
 (5) The transferee cannot deduct anything for the expenditure for the BAE year, and subsection 328‑215(4) does not apply to the transferee in relation to the asset.

328‑255  Closing pool balance etc. below zero
 (1) This section applies if:
 (a) the *closing pool balance of the transferor's *general small business pool for the BAE year is less than zero; or
 (b) the amount worked out under subsection