Document ID: chunk:federal_register_of_legislation:C2025C00029:section:3:p10
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 3 (pt 10/54)
Character Range: 1111353–1113936

for the principal purpose of carrying on a *business; and
 (e) if the amount is included in the first element of the asset's cost—the first use time for the amount is the first time you or any other entity have used the asset, or have it installed ready for use, for any purpose; and
 (f) you have not been entitled to a deduction under this Division for any previous income year in relation to the amount.
 (2) Treat the requirements in paragraph (1)(d) as not being met if, at the first use time for the amount, it is reasonable to conclude that the asset will never be located in Australia.
 (3) For the purposes of paragraph (1)(e), disregard any previous use of the asset that was merely for the purposes of reasonable testing or trialling.
 (4) Treat the requirements in paragraph (1)(e) as not being met if the amount becomes included in the first element of the asset's *cost at a time because of paragraph 40‑205(a) (splitting depreciating assets) or 40‑210(a) (merging depreciating assets).
 (5) In determining the amount of a *recognised new investment amount, disregard:
 (a) subsection 40‑90(2) (reduction in cost where debt is forgiven); and
 (b) paragraph 40‑365(5)(a) (reduction in cost for replacement asset where involuntary disposal).

41‑25  Investment commitment time
 (1) The investment commitment time for the amount is:
 (a) if the amount is included in the first element of the asset's *cost—the time at which you:
 (i) enter into a contract under which you *hold the asset at that time, or will hold the asset at a later time; or
 (ii) start to construct the asset; or
 (iii) start to hold the asset in some other way; or
 (b) if the amount is included in the second element of the asset's cost—the time at which you enter into a contract, or start construction, for the economic benefit in relation to which the amount becomes, or will become, included in that element under paragraph 40‑190(2)(a).

Integrity rule
 (2) Subsection (3) applies in relation to an amount if:
 (a) at a time, you:
 (i) enter into a contract under which you *hold an asset at that time, or will hold the asset at a later time; or
 (ii) start to construct an asset; or
 (iii) start to hold an asset in some other way; and
 (b) at a later time, you engage in conduct that results in you:
 (i) entering into a contract under which you hold the asset mentioned in paragraph (a) (or an identical or substantially similar asset) at that later time, or will hold that asset (or an identical or substantially similar asset) at an even later time; or
 (ii) starting to construct an asset