Document ID: chunk:federal_register_of_legislation:C2004A00844:clause:1_2:p1
Version: federal_register_of_legislation:C2004A00844
Segment Type: clause
Provision Reference: sch 1 cl 2 (pt 1/4)
Character Range: 6979–11251

2                                    Rules about other capital expenditure
2.1                                  Capital expenditure of primary producers and other landholders                                                                                                                                                                                                                                Subdivision 40‑G
                                     You can deduct amounts for capital expenditure on:
                                         * landcare operations immediately; or
                                         * electricity and telephone lines over 10 income years.
2.2                                  Capital expenditure that is immediately deductible                                                                                                                                                                                                                                            Subdivision 40‑H
                                     You can get an immediate deduction for certain capital expenditure on:
                                         * exploration or prospecting; and
                                         * rehabilitation of mine and quarry sites; and
                                         * paying petroleum taxes; and
                                         * environmental protection activities.
2.3                                  Capital expenditure that is deductible over time                                                                                                                                                                                                                                              Subdivision 40‑I
                                     You can deduct amounts for certain capital expenditure associated with projects you carry on. You deduct the amount over the life of the project using a project pool.
                                     You can also deduct amounts for certain business related costs over 5 years.

Subdivision 40‑A—Objects of Division

Table of sections

40‑15 Objects of Division

40‑15  Objects of Division

  The objects of this Division are:
 (a) to allow you to deduct the *cost of a *depreciating asset; and
 (b) to spread the deduction over a period that reflects the time for which the asset can be used to obtain benefits; and
 (c) to provide deductions for certain other capital expenditure that is not otherwise deductible.

Note: This Division does not apply to some depreciating assets: see section 40‑45.

Subdivision 40‑B—Core provisions

Guide to Subdivision 40‑B

40‑20  What this Subdivision is about

      The rules that apply to most depreciating assets are in this Subdivision. It explains:
         • what a depreciating asset is; and
         • when you start deducting amounts for depreciating assets; and
         • how to work out your deductions.
      It also contains rules for splitting and merging depreciating assets.

Table of sections

Operative provisions

40‑25 Deducting amounts for depreciating assets
40‑30 What a depreciating asset is
40‑35 Jointly held depreciating assets
40‑40 Meaning of hold a depreciating asset
40‑45 Assets to which this Division does not apply
40‑50 Assets for which you deduct under another Subdivision
40‑55 Use of certain car methods
40‑60 When a depreciating asset starts to decline in value
40‑65 Choice of methods to work out the decline in value
40‑70 Diminishing value method
40‑75 Prime cost method
40‑80 When you can deduct the asset's cost
40‑85 Meaning of adjustable value and opening adjustable value of a depreciating asset
40‑90 Debt forgiveness
40‑95 Choice of determining effective life
40‑100 Commissioner's determination of effective life
40‑105 Self‑assessing effective life
40‑110 Recalculating effective life
40‑115 Splitting a depreciating asset
40‑120 Replacement spectrum licences
40‑125 Merging depreciating assets
40‑130 Choices
40‑135 Certain anti‑avoidance provisions
40‑140 Getting tax information from associates
40‑145 Application of Criminal Code

[This is the end of the Guide.]

Operative provisions

40‑25  Deducting amounts for depreciating assets

You deduct