Income Tax Assessment Act 1997
The termination value of a * depreciating asset is worked out as at the time when the * balancing adjustment event occurs. It is:
(a) if an item in the table in subsection (2) applies - the amount specified in that item; or
(b) otherwise - the amount you are taken to have received under section 40-305 for the asset.
Section 230-505 provides special rules for working out the amount of consideration for an asset if the asset is a Division 230 financial arrangement or a Division 230 financial arrangement is involved in that consideration.
If more than one item applies, use the value under the last applicable item.
|Termination value table|
|Item||For this balancing adjustment event:||The termination value is:|
|1||You stop using a *depreciating asset, or having it *installed ready for use, for any purpose and you expect never to use it again even though you still *hold it||The *market value of the asset when you stopped using it or having it *installed ready for use|
|2||You decide never to use a *depreciating asset that you have not used even though you still *hold it||The *market value of the asset when you make the decision|
|3||You stop using *in-house software for any purpose and you expect never to use it again even though you still *hold it||Zero|
|4||You decide never to use *in-house software that you have not used even though you still *hold it||Zero|
|5||One or more partners stop holding a *depreciating asset when it becomes a partnership asset or a *balancing adjustment event referred to in subsection 40-295(2) occurs||The *market value of the asset when the partnership started to *hold it or when the balancing adjustment event occurred|
|6||You stop *holding a *depreciating asset under an *arrangement and:||The market value of the asset just before you stopped holding it|
|(a)||there is at least one other party to the arrangement with whom you did not deal at *arm ' s length; and|
|(b)||apart from this item, the *termination value would be less than its *market value|
|7||You stop *holding a *depreciating asset under an *arrangement that was private or domestic in nature to you (for example, a gift)||The *market value of the asset just before you stopped *holding it|
|8||A *depreciating asset is lost or destroyed||The amount or value received or receivable under an insurance policy or otherwise for the loss or destruction|
|9||You stop *holding a *depreciating asset because you die and the asset starts being held by the *legal personal representative||The asset ' s *adjustable value on the day you died or, if the asset is allocated to a low-value pool, so much of the *closing pool balance for the income year in which you died as is reasonably attributable to the asset|
|10||You stop *holding a *depreciating asset because it *passes directly to a beneficiary or joint tenant when you die||The *market value of the asset on the day you die|
|11||A *depreciating asset for which the *Finance Minister has determined an amount for you under section 52A of the Airports (Transitional) Act 1996||The amount so determined|
|12||(Repealed by No 96 of 2014)|
|13||The *balancing adjustment event occurs under subsection 40-295(1A)||Zero|
|14||The *balancing adjustment event occurs under subsection 40-295(1B)||What would, apart from subsection 40-285(3), be the asset ' s *adjustable value on the day the *balancing adjustment event occurs|
The termination value of a * depreciating asset does not include an amount that is included in assessable income as * ordinary income under section 6-5 or as * statutory income under section 6-10 (except an amount that is statutory income under this Division).
Termination value may be adjusted under Subdivision 27-B so that any GST consequences are accounted for.
Termination value may be reduced under section 40-1105 to account for exploration benefits received under farm-in farm-out arrangements.