AIRPORTS (TRANSITIONAL) ACT 1996 - SECT 49B Special rules for fixtures that are depreciating assets-- Income Tax Assessment Act 1997

AIRPORTS (TRANSITIONAL) ACT 1996 - SECT 49B

  (1)   This section applies if:

  (a)   a company obtains a lease relating to particular land under section   21, 22 or 23; and

  (b)   at the time the lease was obtained, a depreciating asset is attached to the land.

  (2)   If:

  (a)   just before the land vested in the Commonwealth under Part   2:

  (i)   the part of the land to which the depreciating asset was attached was held by another entity under a quasi - ownership right over land granted by an exempt Australian government agency; and

  (ii)   the other entity was the holder of the asset; and

  (b)   on the grant of the lease referred to in paragraph   ( 1)(a), the other entity became a sub - lessee of the company;

then, so long as the other entity continues to hold the sub - lease of that part of the land from the company or a successor, the other entity is taken to hold the asset.

  (3)   If:

  (a)   subsection   ( 2) does not apply to the depreciating asset; and

  (b)   the FAC was the holder of the asset just before the land vested in the Commonwealth under Part   2;

that Division applies to the asset as if:

  (c)   the company held the asset; and

  (d)   the amount paid by the company for the grant of the lease were an amount paid for the acquisition of the right.

  (4)   However, the Finance Minister may make a written determination of the cost of the asset referred to in subsection   ( 3) for the purposes of Division   40 of the Income Tax Assessment Act 1997 .

Note:   If a determination is made, the cost of the asset will be determined under item   10 of the table in subsection   40 - 180(2) of the Income Tax Assessment Act 1997 .

  (5)   The FAC must give the Finance Minister such information as the Finance Minister requires about the application of Subdivision   40 - D of the Income Tax Assessment Act 1997 to the asset and to the FAC.

  (6)   This section does not affect the operation of section   19 of the Civil Aviation Legislation Amendment Act 1995 .

  (7)   In this section:

"entity" means any of the following:

  (a)   a company;

  (b)   a partnership;

  (c)   a person in a capacity of trustee;

  (d)   any other person.