Document ID: chunk:federal_register_of_legislation:C2025C00029:section:5:p11
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 5 (pt 11/32)
Character Range: 1408999–1411768

of 2 methods for each depreciating asset:
                        the notional written down value method; and
                        the undeducted pre‑existing audited book value method.

Subdivision 58‑A—Application

Table of sections
58‑5 Application of Division
58‑10 When an asset is acquired in connection with the acquisition of a business

58‑5  Application of Division
 (1) This Division applies in 2 situations.

Entity sale
 (2) The first (an entity sale situation) is where:
 (a) at a particular time on or after 1 July 2001, an entity is an *exempt entity; and
 (b) just after that time, the entity's *ordinary income or *statutory income becomes to any extent assessable income.
 (3) In an entity sale situation:
 (a) the entity is a transition entity; and
 (b) the time when the entity's *ordinary income or *statutory income becomes to that extent assessable is the transition time; and
 (c) the income year in which the *transition time occurs is the transition year for the entity; and
 (d) the *depreciating assets the *transition entity *held just before the transition time are privatised assets.

Asset sale
 (4) The second (an asset sale situation) is where:
 (a) at a particular time on or after 1 July 2001, an entity (the purchaser) whose *ordinary income or statutory income is to any extent assessable acquires a *depreciating asset from the Commonwealth, a State, a Territory or an *exempt entity; and
 (b) the asset is acquired in connection with the acquisition of a *business from the Commonwealth, the State, the Territory or the exempt entity.
 (5) In an asset sale situation:
 (a) the Commonwealth, the State, the Territory or the *exempt entity is the tax exempt vendor; and
 (b) the time when the *depreciating asset is acquired is the acquisition time; and
 (c) the income year in which the *acquisition time occurs is the acquisition year; and
 (d) each *depreciating asset the purchaser acquires from the *tax exempt vendor at the acquisition time is a privatised asset.

58‑10  When an asset is acquired in connection with the acquisition of a business
 (1) A *depreciating asset is taken to be acquired in connection with the acquisition of a *business from the Commonwealth, the State, the Territory or the *exempt entity if and only if:
 (a) the asset was used by the Commonwealth, the State, the Territory or the exempt entity in carrying on a business and the purchaser or another entity uses the asset in carrying on the business; or
 (b) subsection (2) applies.
 (2) This subsection applies if:
 (a) the asset was used by the Commonwealth, the State, the Territory or the *exempt entity in performing functions, or engaging in activities, that did not constitute the carrying on of a *business by the Commonwealth, the