Document ID: chunk:federal_register_of_legislation:C2025C00029:section:2:p9
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 2 (pt 9/9)
Character Range: 970412–972595

and
 (ii) will exceed the minimum expenditure required to maintain the tenement; and
 (c) you choose to apply this subsection to the right or information.
 (1B) A balancing adjustment event occurs for a *depreciating asset you *hold that is a *mining, quarrying or prospecting right, or *mining, quarrying or prospecting information, if:
 (a) since the last time you commenced to hold the right or information, a *balancing adjustment event occurred, because of subsection (1A), to the right or information; and
 (b) paragraph (1A)(b) no longer applies.
 (2) A balancing adjustment event occurs for a *depreciating asset if:
 (a) for any reason, a change occurs in the *holding of, or in the interests of entities in, the asset; and
 (b) the entity or one of the entities that had an interest in the asset before the change has an interest in it after the change; and
 (c) the asset was a partnership asset before the change or becomes one as a result of the change.
 (3) However, a balancing adjustment event does not occur for a *depreciating asset merely because you split it into 2 or more depreciating assets or you merge it with one or more other depreciating assets.
Note: A balancing adjustment event will occur if you stop holding part of a depreciating asset.

40‑300  Meaning of termination value
 (1) The termination value of a *depreciating asset is worked out as at the time when the *balancing adjustment event occurs. It is:
 (a) if an item in the table in subsection (2) applies—the amount specified in that item; or
 (b) otherwise—the amount you are taken to have received under section 40‑305 for the asset.
Note: Section 230‑505 provides special rules for working out the amount of consideration for an asset if the asset is a Division 230 financial arrangement or a Division 230 financial arrangement is involved in that consideration.
 (2) If more than one item applies, use the value under the last applicable item.

Termination value table
Item                     For this balancing adjustment event:                                                                                                                                     The termination value is: