Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) This section has effect if:
(a) an entity (the joining entity ) becomes a * subsidiary member of a * consolidated group at a time (the joining time ); and
(b) because of subsection 40 - 80(1), the joining entity could (or did) deduct for a period before the joining time the * cost of a * depreciating asset that became an asset of the * head company of the group at the joining time because section 701 - 1 (Single entity rule) applied to the joining entity; and
(c) the joining entity could not deduct an amount under Subdivision 40 - B (except because of subsection 40 - 80(1)) for the income year that includes the joining time for that cost.
Note: Subdivision 40 - B allows deductions for the decline in value of depreciating assets. Subsection 40 - 80(1), which is in that Subdivision, provides that the decline in value of certain assets used for exploration and prospecting equals their cost.
(2) Subsection 701 - 55(2) has effect as if the * prime cost method for working out the decline in value of the * depreciating asset applied just before the joining time.
Note: This may affect both the method of working out the decline in value of the asset and the asset's effective life.
Assets in joining entity's low - value pool
716 - 330 Head company's deductions for decline in value of assets in joining entity's low - value pool
Entity leaving group with asset allocated to head company's low - value pool
716 - 335 Entity leaving group with asset allocated to head company's low - value pool
Depreciating assets arising from expenditure in joining entity's software development pool
716 - 340 Depreciating assets arising from expenditure in joining entity's software development pool
Software development pools if entity leaves consolidated group
716 - 345 Head company taken not to have incurred expenditure