Income Tax (Transitional Provisions) Act 1997

This section applies if:

on or after 1 July 2001, a company (the transferor) disposes of property that is not a depreciating asset to another company; and

the companies are members of the same linked group at the time of the disposal; and

apart from this section, the disposal would have resulted in the transferor having an additional decline in value (the deductible amount) under subsection 40‑35(5), 40‑37(5), 40‑40(4) or 40‑43(4) of this Act; and

the sum of:

the money the transferor receives, or is entitled to receive, in respect of the disposal; and

the market value of any other property the transferor receives, or is entitled to receive, in respect of the disposal;

There is no additional decline in value of the notional asset referred to in subsection 40‑35(5), 40‑37(5), 40‑40(4) or 40‑43(4) as a result of the disposal.

Any amount that would be included in the transferor’s assessable income under subsection 40‑35(6), 40‑37(6), 40‑38(6), 40‑40(5) or 40‑43(5) of this Act, or subsection 40‑830(6) of the Income Tax Assessment Act 1997, as a result of the disposal is reduced by the deductible amount.