27‑95 Balancing adjustment events27‑95 Balancing adjustment events

#### 27‑95 Balancing adjustment events (1) The \*termination value of a \*depreciating asset is reduced if the relevant \*balancing adjustment event is a \*taxable supply. The reduction is an amount equal to the \*GST payable on the supply. (2) However, subsection (1) does not apply if the \*termination value of the \*depreciating asset is modified under Division 40 to be its \*market value. (3) The \*termination value of a \*depreciating asset is increased if the entity that \*held the asset has a \*decreasing adjustment that relates directly or indirectly to that \*taxable supply in the income year in which the \*balancing adjustment event occurred. The increase is the amount of the decreasing adjustment. (4) The \*termination value of a \*depreciating asset is decreased if the entity that \*held the asset has an \*increasing adjustment that relates directly or indirectly to that \*taxable supply in the income year in which the \*balancing adjustment event occurred. The decrease is the amount of the increasing adjustment. (5) An amount is included in the assessable income of the entity that \*held the asset if the entity has a \*decreasing adjustment that relates directly or indirectly to that \*taxable supply in a later income year. The amount included is the amount of the decreasing adjustment. (6) The entity that \*held the asset can deduct an amount if the entity has an \*increasing adjustment that relates directly or indirectly to that \*taxable supply in a later income year. The amount it can deduct is the amount of the increasing adjustment.