Document ID: chunk:federal_register_of_legislation:C2014C00703:clause:4_12:p2
Version: federal_register_of_legislation:C2014C00703
Segment Type: clause
Provision Reference: sch 4 cl 12 (pt 2/4)
Character Range: 194959–197532

amounts deductible or assessable under section 40‑285
 (3) Any amount (the section 40‑285 amount):
 (a) that the R&D entity can deduct for the asset under section 40‑285 of the new Act (after applying subsection (2) of this section) for the event year; or
 (b) that is included in the R&D entity's assessable income for the asset under section 40‑285 of the new Act (after applying subsection (2) of this section) for the event year;
is taken to be increased under section 40‑292 of the new Act by the following amount:
where:
adjusted section 40‑285 amount means:
 (a) if the section 40‑285 amount is a deduction—the amount of the deduction; or
 (b) if the section 40‑285 amount is an amount included in the R&D entity's assessable income—so much of the section 40‑285 amount as does not exceed the total decline in value.
old law 1.25 rate deductions means the sum of the R&D entity's notional Division 40 deductions, and notional Division 42 deductions, (if any) for the asset that were multiplied by 1.25 in working out the old law deductions.
total decline in value means the cost of the asset less its adjustable value.

Normal rules do not apply for the asset and the event
 (4) Neither of the following sections:
 (a) section 40‑292 of the new Act (as amended by the Tax Laws Amendment (Research and Development) Act 2011);
 (b) section 40‑292 of the new Act (as that section applies because of Part 2 of Schedule 4 to the Tax Laws Amendment (Research and Development) Act 2011);
to the extent that they would otherwise apply apart from this section to the R&D entity for the event, do so apply to the R&D entity for the event.
Note 1: The section 40‑292 of the new Act mentioned in paragraph (a) would otherwise apply for the event in a case where the R&D entity had new law deductions.
Note 2: The section 40‑292 of the new Act mentioned in paragraph (b) would otherwise apply for the event in respect of the old law deductions.

40‑293  Balancing adjustment—partnership assets used for both general tax purposes and R&D activities

Partners have old law R&D decline in value deductions
 (1) This section applies to an R&D partnership if:
 (a) a balancing adjustment event happens in an income year (the event year) commencing on or after 1 July 2011 for an asset held by the R&D partnership and:
 (i) the R&D partnership can deduct, for an income year, an amount under section 40‑25 of the Income Tax Assessment Act 1997 (the new Act), as that section applies apart from Division 355 of that Act and former section 73BC of the Income Tax Assessment Act 1936 (the