INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART III - LIABILITY TO TAXATION  

Division 3 - Deductions  

Subdivision A - General  

SECTION 59AA   DISPOSAL OF DEPRECIATED PROPERTY ON CHANGE OF OWNERSHIP OR INTEREST  

59AA(1)   [Deemed disposal of whole property]  

If, for any reason, including:


(a) the formation or dissolution of a partnership; or


(b) a variation in the constitution of a partnership, or in the interests of the partners;

a change has occurred in the ownership of, or in the interests of persons in, property in respect of which depreciation has been allowed or is allowable under this Act or the previous Act, and the person, or one or more of the persons, who owned the property before the change has or have an interest in the property after the change, the provisions of this Act relating to depreciation apply as if the person or persons who owned the property before the change (in this section called the ``transferor'' ) had, on the day on which the change occurred, disposed of the whole of the property to the person, or all the persons, by whom the property is owned after the change (in this section called the ``transferee'' ).

59AA(2)   [Disposal at market value]  

Unless a joint election for roll-over relief is made by both the transferor and the transferee, the provisions of this Act relating to depreciation apply as if the consideration for the disposal were equal to the market value of the property immediately before the time when the change occurred.

59AA(2A)   [Election for roll-over relief]  

If a joint election for roll-over relief is made by both the transferor and the transferee, section 58 applies to the disposal.

59AA(2B)   [Conditions for joint election]  

A joint election for roll-over relief has no effect unless it:


(a) is in writing; and


(b) is made:


(i) within 6 months after the later of the following:

(A) the end of the year of income of the transferee in which the disposal occurred;

(B) the commencement of this subsection; or

(ii) within such further period as the Commissioner allows; and


(c) contains such information about the transferor's holding of the property as will enable the transferee to work out how section 58 will apply to the transferee's holding of the property.

59AA(2C)   [Trustee of deceased estate]  

If a person dies before the end of the period allowed for making a joint election for roll-over relief, the trustee of the deceased person's estate may be a party to the election on the deceased person's behalf.

59AA(3)   [Market value]  

A reference in subsection (2) to the market value of property at a particular time shall, if there is insufficient evidence of the market value of the property at that time, be read as a reference to such amount as, in the opinion of the Commissioner, is fair and reasonable.

59AA(4)   [Effect of s 57AF ]  

Subsection (2) has effect subject to section 57AF .


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