Commonwealth Consolidated Acts

INCOME TAX ASSESSMENT ACT 1997 - SECT 58.70

Application of Division   40

  (1)   The * transition entity and the purchaser work out the decline in value of, and the effect of a * balancing adjustment event occurring for, each * privatised asset using Division   40 (Capital allowances) as if the asset had been acquired under a contract entered into on or after 1   July 2001.

Entity sale situation

  (2)   Division   40 applies to a * privatised asset * held by the * transition entity as if the asset had not been used, or * installed ready for use, for any purpose before the * transition time.

  (3)   The first element of the * cost to the * transition entity at the * transition time is the * notional written down value of the asset or the * undeducted pre - existing audited book value of the asset (depending on the choice made for the asset).

  (4)   No amount incurred before the * transition time is included in the second element of the * cost of a * privatised asset.

Asset sale situation

  (5)   The first element of the * cost of a * privatised asset to the purchaser at the * acquisition time is the sum of:

  (a)   the * notional written down value of the asset or the * undeducted pre - existing audited book value of the asset (depending on the choice made for the asset); and

  (b)   the amount of any incidental costs to the purchaser in acquiring the asset.