Commonwealth Consolidated Acts

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NEW BUSINESS TAX SYSTEM (CONSOLIDATION) ACT (NO. 1) 2002 - SECT 705.45

Reduction in tax cost setting amount for accelerated depreciation assets

                   If:

                     (a)  the joining entity * acquired a * depreciating asset at or before 11.45 am, by legal time in the Australian Capital Territory, on 21 September 1999 and held it continuously until the joining time; and

                     (b)  the asset’s * tax cost setting amount would be greater than the joining entity’s * terminating value for the asset; and

                     (c)  the * head company chooses to apply this section to the asset;

the asset’s tax cost setting amount is reduced so that it equals the terminating value.

Note 1:       A consequence of the choice is that accelerated depreciation will apply to the asset: see section 701‑80.

Note 2:       Unlike the position with a reduction in tax cost setting amount under section 705‑40, the amount of the reduction is not re‑allocated among other assets.


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