Commonwealth Consolidated Acts

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INCOME TAX ASSESSMENT ACT 1997 - SECT 27.95

Balancing adjustment events

             (1)  The * termination value of a * depreciating asset is reduced if the relevant * balancing adjustment event is a * taxable supply. The reduction is an amount equal to the * GST payable on the supply.

             (2)  However, subsection (1) does not apply if the * termination value of the * depreciating asset is modified under Division 40 to be its * market value.

             (3)  The * termination value of a * depreciating asset is increased if the entity that * held the asset has a * decreasing adjustment that relates directly or indirectly to that * taxable supply in the income year in which the * balancing adjustment event occurred. The increase is the amount of the decreasing adjustment.

             (4)  The * termination value of a * depreciating asset is decreased if the entity that * held the asset has an * increasing adjustment that relates directly or indirectly to that * taxable supply in the income year in which the * balancing adjustment event occurred. The decrease is the amount of the increasing adjustment.

             (5)  An amount is included in the assessable income of the entity that * held the asset if the entity has a * decreasing adjustment that relates directly or indirectly to that * taxable supply in a later income year. The amount included is the amount of the decreasing adjustment.

             (6)  The entity that * held the asset can deduct an amount if the entity has an * increasing adjustment that relates directly or indirectly to that * taxable supply in a later income year. The amount it can deduct is the amount of the increasing adjustment.



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