Document ID: chunk:federal_register_of_legislation:C2024C00267:section:3:p6
Version: federal_register_of_legislation:C2024C00267
Segment Type: section
Provision Reference: s 3 (pt 6/31)
Character Range: 622296–624951

a new asset holder; and
 (d) the following amount:
 (i) the asset's adjustable value (the roll‑over adjustable value) just before the acquisition, worked out on the assumption that every previous new asset holder had acquired the asset for the asset's roll‑over adjustable value, worked out under subsection (3) or (5) or this subsection, just before it did so;
  is less than:
 (ii) the asset's cost to the new asset holder;
then the consequences in subsection (8) occur.
 (8) The consequences are as follows:
 (a) while the asset is held by the new asset holder, for the purpose of working out deductions for the asset's decline in value under Division 40 of the Income Tax Assessment Act 1997, the acquisition by the new asset holder is taken to have been for an amount equal to the asset's roll‑over adjustable value asset just before the acquisition; and
 (b) if a balancing adjustment event occurs for the asset and:
 (i) the deductions for its decline in value up to that time worked out on the basis in paragraph (a);
  are less than:
 (ii) the deductions that would otherwise have been worked out;
  then the shortfall is allowable as a deduction to the new asset holder for the income year in which it ceases to hold the asset.

Division 701B—Modified application of provisions of Income Tax Assessment Act 1997 relating to CGT event L1

Table of sections
701B‑1 Modified application of CGT Consolidation provisions to allow immediate availability of capital loss for CGT event L1

701B‑1  Modified application of CGT Consolidation provisions to allow immediate availability of capital loss for CGT event L1
 (1) This section applies if:
 (a) CGT event L1 happens; and
 (b) members of the consolidated group or the MEC group mentioned in subsection 104‑500(1) of the Income Tax Assessment Act 1997 held all of the membership interests in the entity mentioned in that subsection from the end of 30 June 2002 until the entity became a subsidiary member of the group; and
 (c) before the end of the fourth income year of the head company of the group ending after the entity became a subsidiary member of the group, the entity ceases to be a subsidiary member; and
 (d) all of the assets, other than those excepted under subsection (2), that the head company held when the entity became a subsidiary member, because the entity was taken by subsection 701‑1(1) (the single entity principle) of the Income Tax Assessment Act 1997 to be a part of the head company, continued to be held by the head company until the entity ceased to be a subsidiary member.

Excepted assets
 (2) For the purposes of paragraph (1)(d), excepted assets are assets that: