Document ID: chunk:federal_register_of_legislation:C2025C00029:section:3:p51
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 3 (pt 51/54)
Character Range: 1215622–1218122

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:
 (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:
 (i) your interest in the plant, or part of it; or
 (ii) a right under, or an interest in, the lease;
  and that disposal does not constitute a *balancing adjustment event.
 (4) The amount included is the sum of the following amounts:
 (a) the money you receive or are entitled to receive for the disposal;
 (b) the amount of any reduction in a liability of yours as a result of the disposal;
 (c) the *market value of any other benefit you receive or are entitled to receive as a result of the disposal.
It is included for the income year in which the disposal occurred.
 (5) However, an amount is not included in your assessable income under this section 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).
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.

45‑15  Disposal of shares in 100% subsidiary that leases plant
 (1) A company (the former subsidiary) is treated as if it had disposed of *plant, received its *market value for that disposal and immediately reacquired it for the same amount if:
 (a) the former subsidiary has deducted or can deduct an amount for the decline in value of the plant; and
 (b) the former subsidiary was a *100% subsidiary of another company in a *wholly‑owned group at a time when it *held the plant; and
 (c) for most of the time when the former subsidiary held the plant, the plant was leased to another entity; and
 (d) the main *business of the former subsidiary was to lease assets; and
 (e) all or part of the lease period occurred on or after 22 February 1999; and
 (f) on or after that day,