Commonwealth Numbered Acts

INCOME TAX ASSESSMENT ACT 1997 No. 38 of 1997 - SECT 330.480

(1) A balancing adjustment is required if:

   (a)  you can deduct an amount for the income year, or you have deducted or
        can deduct an amount for an earlier income year:

        (i)    under Subdivision 330-A or 330-C or a corresponding previous
               law, in respect of capital expenditure in respect of property
               you own; or

        (ii)   under Subdivision 330-H or a corresponding previous law, in
               respect of capital expenditure in respect of property you own
               or use; and

   (b)  in the income year, the property is disposed of, lost or destroyed, or
        you otherwise stop using it:

        (i)    for *qualifying purposes; or

        (ii)   primarily and principally for *mining or quarrying transport;
               and

   (c)  if the property is disposed of-Common rule 1 (which is about roll-over
        relief for related entities) does not apply to the disposal. Note 1:
        The corresponding previous law is set out in section 330-70 of the
        Income Tax (Transitional Provisions) Act 1997. Note 2: Common rule 1
        starts at section 41-10. Note 3: If there is a change in partnership
        interests in respect of property, a balancing adjustment may be
        required: see Subdivision 330- K (which is about partial change of
        ownership).

(2) A balancing adjustment is also required if:

   (a)  in the income year, property you own is disposed of, lost or
        destroyed, or you otherwise stop using it for *qualifying purposes;
        and

   (b)  subsection (1) does not require a balancing adjustment in relation to
        the disposal, loss or destruction, or stopping of use; and

   (c)  apart from the effect of the *excess deduction rules, you would have
        been able to deduct an amount for the income year, or for an earlier
        income year, under Subdivision 330-A or 330-C or a corresponding
        previous law, in respect of the property; and

   (d)  if the property is disposed of-section 330-547 (which is about
        roll-over relief) does not apply to the disposal. Note: See notes 1
        and 3 to subsection (1).

(3) A qualifying purpose is a purpose that qualifies expenditure on the
property for a deduction under Subdivision 330-A or 330-C.

(4) You are also taken to use the property for a qualifying purpose if you use
it (or merely hold it in reserve and install it ready to be used) for
*rehabilitation of a site on which you carried on *eligible mining or
quarrying operations, or *exploration or prospecting, but only if the property
is:

   (a)  covered by the definition of *housing and welfare; or

   (b)  *plant for which a deduction is available under Subdivision 330- A.

(5) The excess deduction rules are:

   (a)  Subdivision 330-F; and

   (b)  the old excess deduction provisions. Note: The old excess deduction
        provisions are set out in section 330- 72 of the
        Income Tax (Transitional Provisions) Act 1997.

(6) If there is a change in ownership of part of an interest in property, the
person whose ownership has changed is taken, for the purposes of this section,
to have disposed of that part. But this subsection does not apply if section
330-520 (which is about a partial change of ownership) applies to the change.
Example: You and another person are joint venturers and you each have a 50%
interest in a housing and welfare development. By selling 20% of your 50%
interest to the other person you are taken to have disposed of that 20%
interest.