Document ID: chunk:federal_register_of_legislation:C2004A00844:clause:1_6
Version: federal_register_of_legislation:C2004A00844
Segment Type: clause
Provision Reference: sch 1 cl 6
Character Range: 63278–65370

6                                                                                       All or part of a liability to provide a *non‑cash benefit (except the *depreciating asset) owed to you by another entity is terminated  The *market value of the non‑cash benefit when the liability is terminated

Note: Item 1 includes not only amounts actually paid but also amounts taken to have been paid. Examples include the price of the notional purchase made when trading stock is converted to a depreciating asset under section 70‑110, the cost of an asset held under a hire purchase arrangement under section 240‑25 and a lessor's deemed purchase price when a luxury car lease is terminated under subsection 42A‑105(3) of Schedule 2E to the Income Tax Assessment Act 1936.

 (2) In applying the table in subsection (1) to a liability of yours to pay an amount or provide a *non‑cash benefit, don't count any part of the liability you have already satisfied.

40‑190  Second element of cost

 (1) The second element is worked out after you start to *hold the *depreciating asset.

 (2) The second element is the amount you are taken to have paid under section 40‑185 for each economic benefit that has contributed to bringing the asset to its present condition and location from time to time since you started to *hold the asset.

Example: Andrew adds a new tray and canopy to his ute. The materials and labour that go into the addition are economic benefits that Andrew received and that contribute to the ute's present condition.

 The payments he makes for those economic benefits are included in the second element of the ute's cost.

Note: The second element of the cost may be modified by a later provision in this Subdivision.

 (3) However, the second element is worked out using this table if an item in it applies. Use the last applicable item.

Second element of the cost of a depreciating asset
Item                                                In this case:                                                                                              The second element of cost is: