INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)
A lessor who is not an eligible lessor in relation to a unit of property under section 54AB because one or more of the conditions in subsection 54AC(3) is satisfied, is taken to have disposed of the property for the purposes of section 59 or 59AA for the amount of consideration set out in this section.
54AE(2) [Calculation of consideration](a) the lease expires or is otherwise terminated without the lessor exercising his or her right to remove, or effective right to remove, the property; or
(b) there is an event of default under the lease and the lessor ceases to have a right to remove, or an effective right to remove, the property; or
(c) the lessee discharges his or her obligations under the lease and the property is not returned to the lessor;
the lessor is taken to have disposed of the property for a consideration equal to:
(d) if the parties to the lease are dealing at arm's length and there is any termination or residual amount received or receivable under the lease in respect of the property - that termination or residual amount; or
(e) if the parties to the lease are dealing at arm's length and there is no termination or residual amount received or receivable under the lease in respect of the property - any amount received or receivable by way of compensation in lieu of recovery of the property; or
(f) if the parties to the lease are not dealing at arm's length - the market value of the property immediately before the time of disposal referred to in paragraph (a), (b) or (c) worked out as if it were removed from the land. 54AE(3) [Disposal by lessor]
If the lessor disposes of his or her interest in the lease including the residual interest in the property, the lessor is taken to have disposed of the property for a consideration equal to:
(a) if the parties to the disposal are dealing at arm's length - the part of the disposal price that is reasonably attributable to the property; or
(b) if the parties to the disposal are not dealing at arm's length - the market value immediately before the time of disposal worked out as if the property were removed from the land. 54AE(4) [Loss or destruction]
If the property is lost or destroyed, the lessor is taken to have disposed of the property for the sum of any amounts received or receivable in relation to its loss or destruction.
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