Commonwealth Consolidated Acts

INCOME TAX ASSESSMENT ACT 1997 - SECT 417.30

  (1)   If:

  (a)   before the * Timor Sea Maritime Boundaries Treaty entered into force, you * held a * depreciating asset that you used, or had * installed ready for use, for a purpose of undertaking * transitioned petroleum activities; and

  (b)   you stopped holding the asset when that treaty entered into force, because the asset ceased to exist at that time; and

  (c)   the cessation occurred in connection with the entry into force of that treaty;

the cessation is taken, for the purposes of this Act, not to be a * balancing adjustment event.

  (2)   Section   40 - 285 does not apply in relation to a * depreciating asset you * held if:

  (a)   before the * Timor Sea Maritime Boundaries Treaty entered into force, you or another entity used the asset, or you or another entity had it * installed ready for use, for a purpose of undertaking * transitioned petroleum activities; and

  (b)   on or after the day on which that treaty entered into force, a * balancing adjustment event occurs for the asset.

Note:   The effect of this subsection is to prevent an amount being included in your assessable income, or a deduction arising, because of a balancing adjustment event. The balancing adjustment event still occurs, so the operation of a section such as section   118 - 24 is unaffected.

  (3)   It does not matter, for the purposes of paragraph   (2)(a), whether the asset is also used, or * installed ready for use, for a purpose other than the purpose of undertaking * transitioned petroleum activities.

  (4)   If, as a result of the * balancing adjustment event mentioned in paragraph   (2)(b), another entity * holds the asset, the * cost of the asset to the other entity is taken to be the asset's * adjustable value to you just before the balancing adjustment event occurs.