Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-45 - RULES FOR PARTICULAR INDUSTRIES AND OCCUPATIONS  

Division 417 - Timor Sea petroleum  

Subdivision 417-B - Capital allowances  

SECTION 417-35   Allocating assets to a project pool  

417-35(1)  
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.

417-35(5)  
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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