Commonwealth Consolidated Acts

INCOME TAX ASSESSMENT ACT 1997 - SECT 355.468

  (1)   The * R&D entity (the partner ) has an amount under this section if:

  (a)   the partner is a partner in an * R&D partnership; and

  (b)   a * balancing adjustment event happens in the present year for a * depreciating asset * held by the R&D partnership and for which:

  (i)   the R&D partnership can deduct, for an income year, an amount under section   40 - 25, as that section applies apart from Division   355 and former section   73BC of the Income Tax Assessment Act 1936 ; or

  (ii)   the R&D partnership could have deducted, for an income year, an amount as described in subparagraph   (i) if it had used the asset; and

  (c)   one or more partners (including the partner) in the R&D partnership are entitled under section   355 - 100 to * tax offsets for one or more income years for deductions under section   355 - 520 for the asset; and

  (d)   the R&D partnership can deduct an amount (the section   40 - 285 amount ) for the asset under section   40 - 285 (after applying subsection   40 - 293(2)) for the present year.

Note:   This section applies in a modified way if the partners have deductions for the asset under former section   73BA or 73BH of the Income Tax Assessment Act 1936 (see section   40 - 293 of the Income Tax (Transitional Provisions) Act 1997 ).

  (2)   The amount is the partner's proportion of the amount worked out as follows:

where:

"total decline in value" means the * cost of the asset less its * adjustable value.

"total R&D deductions" means the sum of each partner's deductions mentioned in paragraph   (1)(c) of this section.