Document ID: chunk:federal_register_of_legislation:C2025C00014:clause:2d_19:p1
Version: federal_register_of_legislation:C2025C00014
Segment Type: clause
Provision Reference: sch 2D cl 19 (pt 1/2)
Character Range: 2197076–2200111

19                                                               Capital allowances                                  Division 40

57‑90  Post‑transition deductions—assume that the transition taxpayer had never been exempt
  In working out the transition taxpayer's allowable deductions under a modified deduction rule for the transition year or a later year of income, assume that the modified deduction rule had applied at all times before the transition time as if the transition taxpayer's income had never been exempt from income tax.

57‑95  Amount of deduction not allowable for transition year
 (1) If, apart from this section, an amount would be an allowable deduction under a modified deduction rule for the transition year in respect of expenditure incurred before the transition time (whether or not during the transition year), only so much of the amount as is worked out using the following formula is so allowable:

where:
post‑expenditure part means:
 (a) if the expenditure was incurred before the transition year—the number of days in the transition year; or
 (b) otherwise—the number of days in the period from the beginning of the day on which the expenditure is incurred until the end of the transition year.
 (2) This section does not apply to an amount to which paragraph 57‑110(1)(b) (which deals with balancing adjustments) applies.

57‑100  No elections etc. before transition time
  In working out the transition taxpayer's allowable deductions under a modified deduction rule:
 (a) assume that the transition taxpayer did not, at any time, make any election or declaration, or give any notice, under the rule in relation to a year of income before the transition year; and
 (b) any election or declaration (other than one under former subsection 124ZADA(1)) the transition taxpayer makes, or any notice the transition taxpayer gives, under the rule in relation to the transition year has no effect in so far as it relates to expenditure incurred before the transition time.

57‑105  Special rules for mining and quarrying

Exploration and prospecting—assume no expenditure
 (1) In working out the transition taxpayer's allowable deductions under the former Subdivision 330‑A or 330‑C or Division 40 of the Income Tax Assessment Act 1997, assume that the transition taxpayer incurred no expenditure on exploration and prospecting before the transition time.

Assume that no excess deductions available
 (2) In working out the transition taxpayer's allowable deductions under the former Subdivision 330‑A or 330‑C of the Income Tax Assessment Act 1997, assume that, for each year of income before the transition year, the transition taxpayer's assessable income would have exceeded the total of the transition taxpayer's deductions for the year.
Note: This means that the transition taxpayer can have no excess deductions remaining from years of income before the transition year.

Subdivision 57‑K—Balancing adjustments

57‑110  Apportionment of balancing adjustments
 (1) If, apart from this subsection, a