Document ID: chunk:federal_register_of_legislation:C2025C00029:section:8:p12
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 8 (pt 12/30)
Character Range: 4192211–4194777

250‑135

Overall test

250‑10  When this Division applies to you and an asset
  This Division applies to you and an asset at a particular time if:
 (a) the general test in section 250‑15 is satisfied in relation to you and the asset; and
 (b) none of the exclusions in sections 250‑20, 250‑25, 250‑30, 250‑40 and 250‑45 apply.

250‑15  General test
  This Division applies to you and an asset at a particular time if:
 (a) the asset is being *put to a tax preferred use; and
 (b) the *arrangement period for the *tax preferred use of the asset is greater than 12 months; and
 (c) *financial benefits in relation to the tax preferred use of the asset have been, will be or can reasonably be expected to be, *provided to you (or a *connected entity) by:
 (i) a *tax preferred end user (or a connected entity); or
 (ii) any *tax preferred entity (or a connected entity); or
 (iii) any entity that is a foreign resident; and
 (d) disregarding this Division, you would be entitled to a *capital allowance in relation to:
 (i) a decline in the value of the asset; or
 (ii) expenditure in relation to the asset; and
 (e) you lack a *predominant economic interest in the asset at that time.

250‑20  First exclusion—small business entities
  This Division does not apply to you and an asset if:
 (a) you are a *small business entity for the income year in which the *arrangement period for the *tax preferred use of the asset starts; and
 (b) you choose to deduct amounts under Subdivision 328‑D for the asset for that income year.

250‑25  Second exclusion—financial benefits under minimum value limit
 (1) This Division does not apply to you and an asset that is being *put to a tax preferred use under a particular *arrangement if, at the start of the *arrangement period, the total of the nominal values of all the *financial benefits that have been, or will be or can reasonably be expected to be, provided to you (or a *connected entity):
 (a) by *members of the tax preferred sector; and
 (b) in relation to the *tax preferred use of the asset or any other asset that is being, or is to be, put to a tax preferred use under the arrangement;
does not exceed $5 million.
 (2) The amount referred to in subsection (1) is indexed annually.
Note: Subdivision 960‑M shows you how to index amounts.

250‑30  Third exclusion—certain short term or low value arrangements

Certain short term or low value arrangements generally excluded
 (1) This Division does not apply to you and an asset that is being *put to a tax preferred use under a particular *arrangement if:
 (a) the