Commonwealth Consolidated Acts

INCOME TAX ASSESSMENT ACT 1997 - SECT 250.85

  (1)   For the purposes of this Division, the * financial benefits provided in relation to a tax preferred use of an asset include (but are not limited to):

  (a)   a financial benefit provided in relation to:

  (i)   bringing the asset into a state, condition or location in which it can be * put to the tax preferred use; or

  (ii)   the start of the * tax preferred use of the asset; and

  (b)   a financial benefit provided in relation to the end of the tax preferred use of the asset; and

  (c)   a financial benefit provided in relation to the termination or expiration of an * arrangement that deals with:

  (i)   the tax preferred use of the asset; or

  (ii)   the provision of financial benefits in relation to the tax preferred use of the asset; and

  (d)   a financial benefit provided in relation to the purchase or acquisition of the asset by, or transfer of the asset to, the * tax preferred end user (or a * connected entity).

  (2)   Without limiting paragraph   (1)(b), if the asset has a * guaranteed residual value:

  (a)   the amount of the guaranteed residual value is taken to be a * financial benefit provided in relation to the tax preferred use of the asset ; and

  (b)   that financial benefit is taken to be provided when the relevant payment is made in relation to the guaranteed residual value.

  (3)   The asset has a guaranteed residual value if there is an * arrangement that provides to the effect that if:

  (a)   on or after the end of the * arrangement period, you (or a * connected entity) sell or otherwise dispose of the asset to any person; and

  (b)   you (or a connected entity) receives in respect of the sale or disposal:

  (i)   no consideration; or

  (ii)   consideration that is less than an amount (the guaranteed amount ) specified in, or ascertainable under, the provision;

a * member of the tax preferred sector will pay to you (or a connected entity), or to someone else for your benefit (or for the benefit of a connected entity), an amount equal to:

  (c)   the guaranteed amount if subparagraph   (b)(i) applies; or

  (d)   the amount by which the guaranteed amount exceeds the consideration if subparagraph   (b)(ii) applies.

The amount of the guaranteed residual value is taken to be the guaranteed amount.

  (4)   If:

  (a)   an asset is * put to a tax preferred use; and

  (b)   an entity is an * end user of the asset because the entity manages the asset or the use to which the asset is put;

any * financial benefit that the entity (or a * connected entity) provides that is calculated by reference to the receipts, revenue or income generated by the use of the asset is also taken to be a financial benefit provided in relation to the tax preferred use of the asset .

  (5)   For the purposes of this Division (other than this subsection), a * financial benefit provided by a * member of the tax preferred sector is taken not to be provided in relation to the tax preferred use of an asset to the extent to which the financial benefit merely passes on, or represents:

  (a)   financial benefits provided in relation to the use of the asset; or

  (b)   something derived from the use of the asset;

by someone who is not a member of the tax preferred sector.

  (6)   For the purposes of this Division, disregard a * financial benefit * provided in relation to the tax preferred use of the asset to the extent to which it consists solely of routine maintenance of the asset.

  (7)   For the purposes of this Division, if a * financial benefit is provided in relation to the use of a number of assets, a separate financial benefit of an amount or value that is reasonably attributable to each asset is taken to be provided in relation to each asset.

  (8)   To avoid doubt, a * financial benefit may be provided in relation to a tax preferred use of an asset even though it is provided before the * tax preferred use of the asset starts.

  (9)   For the purposes of this Division:

  (a)   a * financial benefit that is not an amount:

  (i)   is taken to become due and payable when the entity providing the financial benefit becomes liable to provide the financial benefit; and

  (ii)   is taken to be paid when it is provided; and

  (b)   a financial benefit that is paid without becoming due and payable is taken to have become due and payable on the day on which it was paid.