Income Tax Assessment Act 1997
View history note
Hide history noteApplication of Division 40
58-70(1)
The *transition entity and the purchaser work out the decline in value of, and the effect of a *balancing adjustment event occurring for, each *privatised asset using Division 40 (Capital allowances) as if the asset had been acquired under a contract entered into on or after 1 July 2001.
Entity sale situation
58-70(2)
Division 40 applies to a *privatised asset *held by the *transition entity as if the asset had not been used, or *installed ready for use, for any purpose before the *transition time.
58-70(3)
The first element of the *cost to the *transition entity at the *transition time is the *notional written down value of the asset or the *undeducted pre-existing audited book value of the asset (depending on the choice made for the asset).
58-70(4)
No amount incurred before the *transition time is included in the second element of the *cost of a *privatised asset.
Asset sale situation
58-70(5)
The first element of the *cost of a *privatised asset to the purchaser at the *acquisition time is the sum of:
(a) the *notional written down value of the asset or the *undeducted pre-existing audited book value of the asset (depending on the choice made for the asset); and
(b) the amount of any incidental costs to the purchaser in acquiring the asset.
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