Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-10 - FINANCIAL TRANSACTIONS  

Division 250 - Assets put to tax preferred use  

Subdivision 250-B - When this Division applies to you and an asset  

Discount rate to be used in working out present values

SECTION 250-105   Discount rate to be used in working out present values  

250-105(1)  
For the purposes of section 250-40 , the discount rate to be used in working out the present value of a future amount is the *long term bond rate for the *financial year in which the relevant *arrangement period starts.

250-105(2)  
For the purposes of section 250-135 and Subdivisions 250-C and 250-D , the discount rate to be used in working out the present value of a future amount is a rate that reflects a constant periodic rate of return (worked out on a compounding basis) on the investment in:


(a) the asset referred to in subparagraph 250-15(d)(i) if that subparagraph applies; or


(b) the expenditure referred to in paragraph 250-15(d)(ii) if that subparagraph applies;

that is implicit in the *arrangements under which the asset is *put to a tax preferred use and *financial benefits are *provided in relation to that tax preferred use.


 

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