Document ID: chunk:federal_register_of_legislation:C2004C01190:clause:1_1:p1
Version: federal_register_of_legislation:C2004C01190
Segment Type: clause
Provision Reference: sch 1 cl 1 (pt 1/18)
Character Range: 7996–10783

1  Before Division 41
Insert:

Division 40—Capital allowances

Table of Subdivisions

40‑B Core provisions
40‑C Cost
40‑D Balancing adjustments
40‑E Low‑value and software development pools
40‑F Primary production depreciating assets
40‑G Capital expenditure of primary producers and other landholders
40‑I Capital expenditure that is deductible over time

Subdivision 40‑B—Core provisions

Table of sections

40‑10 Plant
40‑15 Recalculating effective life
40‑20 IRUs
40‑25 Software
40‑30 Spectrum licences
40‑33 Datacasting transmitter licences
40‑35 Mining unrecouped expenditure
40‑40 Transport expenditure
40‑45 Intellectual property
40‑50 Forestry roads and timber mill buildings
40‑55 Environmental impact assessment
40‑60 Pooling under Subdivision 42‑L of the former Act
40‑65 Substituted accounting periods
40‑70 References to amounts deducted and reductions in deductions
40‑75 Mining expenditure incurred after 1 July 2001 on an asset
40‑80 Other expenditure incurred after 1 July 2001 on a depreciating asset

40‑10  Plant

 (1) This section applies to you if:
 (a) you have deducted or can deduct amounts for plant under Division 42 of the Income Tax Assessment Act 1997 (the former Act) as in force just before it was amended by the New Business Tax System (Capital Allowances) Act 2001, or you could have deducted amounts under that Division for the plant if you had used it, or had it installed ready for use, for the purpose of producing assessable income before that day; and
 (b) either:
 (i) you hold the plant at 1 July 2001; or
 (ii) subparagraph (i) does not apply and you were the owner or quasi‑owner of the plant at the end of 30 June 2001.

 (2) Division 40 of the Income Tax Assessment Act 1997 as amended by the New Business Tax System (Capital Allowances) Act 2001 (the new Act) applies to the plant on this basis:
 (a) the amount that was your undeducted cost at the end of 30 June 2001 becomes the plant's opening adjustable value; and
 (b) you use the same cost, effective life and method that you were using under Division 42 of the former Act; and
 (c) if you excluded an amount from your assessable income under section 42‑290 of the former Act for a balancing adjustment event that occurred on or before 11.45 am, by legal time in the Australian Capital Territory, on 21 September 1999—the cost of the plant, and its opening adjustable value, are reduced by that amount; and
 (d) if subparagraph (1)(b)(ii) applies to you—you are treated as the holder of the plant while you are its holder or while the circumstances under which you would have been the owner or quasi‑owner of the plant under the former Act continue.

Note: There are special rules for entities that have substituted accounting periods: see section 40‑65.

 (3) If you were using