Income Tax Assessment Act 1997
You may choose to allocate to a project pool all the *depreciating assets (the pooled assets ) that:
(a) you *held when the *Timor Sea Maritime Boundaries Treaty entered into force; and
(b) before that treaty entered into force, you used, or had *installed ready for use, for a purpose of undertaking *transitioned petroleum activities. 417-35(2)
You must choose by the day you lodge your *income tax return for the income year (the initial income year ) in which that treaty entered into force. 417-35(3)
The choice is irrevocable. 417-35(4)
If you make the choice, for the purposes of Division 40 and section 417-30 :
(a) the pooled assets are taken to be a single *depreciating asset that you *hold; and
(b) the single asset is taken to be used, or *installed ready for use, for the same purpose as the purpose for which the pooled assets were used, or installed ready for use, when the *Timor Sea Maritime Boundaries Treaty entered into force; and
(c) the *cost of the single asset is taken to be an amount equal to the sum of the *adjustable values of all of the pooled assets when that treaty entered into force; and
(d) the decline in value of the single asset is taken to be:
(i) for the initial income year - 40% of its cost; and
(ii) for the next income year - 40% of its cost; and
(iii) for the income year after that next income year - 20% of its cost; and
(e) a *balancing adjustment event cannot occur for the single asset; and
(f) a *CGT event cannot occur for the single asset; and
(g) amounts are not deductible, by you or any other entity, for declines in value of any of the assets allocated to the pool for:
(i) the part of the initial income year occurring on or after the entry into force of that treaty; or
(ii) any subsequent income year.
The transfer of a pooled asset to another entity does not affect the operation of subsection (4) in relation to the single asset.
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