Document ID: chunk:federal_register_of_legislation:C2025C00029:section:3:p50
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 3 (pt 50/54)
Character Range: 1213246–1215841

to the extent that:
 (a) it is included in that assessable income under a provision of this Act outside this Division; or
 (b) you apply it under section 40‑365 (about offsetting balancing adjustments); or
 (c) roll‑over relief is available for the disposal under section 40‑340.
Note: There are special rules for disposals between 22 February 1999 and 21 September 1999: see Division 45 of the Income Tax (Transitional Provisions) Act 1997.

45‑10  Disposal of interest in partnership
 (1) An amount is included in your assessable income if:
 (a) a partnership of which you are (or were) a member has deducted or can deduct an amount for the decline in value of *plant; and
 (b) the deductions have been or would be reflected in your interest in the partnership net income or partnership loss; and
 (c) for most of the time when the partnership *held the plant, it leased it to another entity; and
 (d) all or part of the lease period occurred on or after 22 February 1999; and
 (e) on or after that day, you dispose of your interest in the plant, or part of it, and that disposal constitutes a *balancing adjustment event; and
 (f) the sum of the following amounts is more than that part of the plant's *written down value that is attributable to that interest:
 (i) the money you receive or are entitled to receive for the disposal;
 (ii) the amount of any reduction in a liability of yours as a result of the disposal;
 (iii) the *market value of any other benefit you receive or are entitled to receive as a result of the disposal.
 (2) The amount included is the excess referred to in paragraph (1)(f). It is included for the income year in which the disposal occurred.
Example: Chris has a 50% share in a partnership formed to lease an asset. The asset has a written down value of $124,000 (of which Chris' share is $62,000).
 Chris assigns his partnership share to another entity for $34,000 plus the other entity agreeing to take over Chris' obligations to service his share of the partnership debt (which is $165,000). The total consideration is:
 The amount assessable under section 45‑10 is the excess referred to in paragraph 45‑10(1)(f), which is:
 This amount would be reduced if part of it is included in Chris' assessable income under another provision (see subsection 45‑10(5)).
Note 1: There is a reduction of the amount included for certain plant acquired before 21 September 1999: see section 45‑30.
Note 2: There is a limit on the amount included for plant for which there is a CGT exemption: see section 45‑35.
 (3) An amount is also included in your assessable income if: