Commonwealth Consolidated Acts Commonwealth Consolidated ActsWhen an entity becomes a subsidiary member of an existing consolidated group, the tax cost setting amount for its assets reflects the cost to the group of acquiring the entity.
Table of sections
Application and object
705‑10 Application and object of this Subdivision
705‑15 Cases where this Subdivision does not have effect
Tax cost setting amount for assets that joining entity brings into joined group
705‑20 Tax cost setting amount worked out under this Subdivision
705‑25 Tax cost setting amount for retained cost base assets
705‑30 What is the joining entity’s terminating value for an asset?
705‑35 Tax cost setting amount for reset cost base assets
705‑40 Reduction in tax cost setting amount for revenue assets
705‑45 Reduction in tax cost setting amount for accelerated depreciation assets
705‑50 Reduction in tax cost setting amount for over‑depreciated assets
705‑55 Order of application of sections 705‑40, 705‑45 and 705‑50
How to work out the allocable cost amount
705‑60 What is the joined group’s allocable cost amount for the joining entity?
705‑65 Cost of membership interests in the joining entity—step 1 in working out allocable cost amount
705‑70 Liabilities of the joining entity—step 2 in working out allocable cost amount
705‑75 Liabilities of the joining entity—reductions for purposes of step 2 in working out allocable cost amount
705‑80 Liabilities of the joining entity—reductions/increases for purposes of step 2 in working out allocable cost amount
705‑85 Liabilities of the joining entity—increases for purposes of step 2 in working out allocable cost amount
705‑90 Undistributed, frankable profits accruing to joined group before joining time—step 3 in working out allocable cost amount
705‑95 Pre‑joining time distributions out of certain profits—step 4 in working out allocable cost amount
705‑100 Losses accruing to joined group before joining time—step 5 in working out allocable cost amount
705‑105 Continuity of holding membership interests—steps 3 to 5 in working out allocable cost amount
705‑110 If joining entity transfers a loss to the head company—step 6 in working out allocable cost amount
705‑115 If head company becomes entitled to certain deductions—step 7 in working out allocable cost amount
Preservation of application of Subdivision 165‑CC (about unrealised losses)
705‑120 Preservation of application of Subdivision 165‑CC (about unrealised losses)
How to work out a pre‑CGT factor for assets of joining entity
705‑125 Pre‑CGT factor for assets of joining entity
[This is the end of the Guide.]