Commonwealth Consolidated Acts

INCOME TAX ASSESSMENT ACT 1997 - SECT 40.295

             (1)  A balancing adjustment event occurs for a * depreciating asset if:

                     (a)  you stop * holding the asset; or

                     (b)  you stop using it, or having it * installed ready for use, for any purpose and you expect never to use it, or have it installed ready for use, again; or

                     (c)  you have not used it and:

                              (i)  if you have had it installed ready for use--you stop having it so installed; and

                             (ii)  you decide never to use it.

Note:          A balancing adjustment event occurs under paragraph 40-295(1)(a) when you start holding a depreciating asset as trading stock.

             (2)  A balancing adjustment event occurs for a * depreciating asset if:

                     (a)  for any reason, a change occurs in the * holding of, or in the interests of entities in, the asset; and

                     (b)  the entity or one of the entities that had an interest in the asset before the change has an interest in it after the change; and

                     (c)  the asset was a partnership asset before the change or becomes one as a result of the change.

             (3)  However, a balancing adjustment event does not occur for a * depreciating asset merely because you split it into 2 or more depreciating assets or you merge it with one or more other depreciating assets.

Note:          A balancing adjustment event will occur if you stop holding part of a depreciating asset.