Document ID: chunk:federal_register_of_legislation:C2025C00029:section:4:p20
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 4 (pt 20/37)
Character Range: 442353–445031

deduct amounts for a *depreciating asset under Division 40 or 328; and
 (b) the entity has a *decreasing adjustment in an income year that relates directly or indirectly to the asset.
 (1A) However, this section does not apply to a *decreasing adjustment that arises under Division 129 or 132 of the *GST Act.
Note: See instead section 27‑87.
 (2) The asset's *cost is reduced by an amount equal to the *decreasing adjustment if the adjustment arises in the income year in which the asset's *start time occurs.
 (3) The asset's *opening adjustable value for an income year and its *cost is reduced by an amount equal to the *decreasing adjustment if the adjustment arises in that year and that year is after the one in which the asset's*start time occurs.
 (4) If the reduction under subsection (2) or (3) is more than:
 (a) for a subsection (2) case—the *depreciating asset's *cost; or
 (b) for a subsection (3) case—the depreciating asset's *opening adjustable value;
the excess is included in the entity's assessable income unless the entity is an *exempt entity.

Exception: pooling
 (5) This section does not apply to:
 (a) a depreciating asset allocated to a low‑value pool or a pool under Division 328 for or in the *current year; or
 (b) *in‑house software if expenditure on the software is allocated to a software development pool for the current year; or
 (c) a project pool.

27‑87  Certain decreasing adjustments included in assessable income
 (1) This section applies to an entity if:
 (a) the entity can deduct amounts for a *depreciating asset under Division 40 or 328; and
 (b) the entity has a *decreasing adjustment that arises under Division 129 or 132 of the *GST Act in an income year that relates directly or indirectly to the asset; and
 (c) section 27‑95 does not apply to the entity in relation to the asset.
 (2) The amount of the *decreasing adjustment is included in the entity's assessable income for the income year unless the entity is an *exempt entity.

27‑90  Cost or opening adjustable value of depreciating assets increased: increasing adjustments
 (1) This section applies to an entity if:
 (a) the entity can deduct amounts for a *depreciating asset under Division 40 or 328; and
 (b) the entity has an *increasing adjustment in an income year that relates directly or indirectly to the asset.
 (1A) However, this section does not apply to an *increasing adjustment that arises under Division 129 or 132 of the *GST Act.
Note: See instead section 27‑92.
 (2) The asset's *cost is increased by an amount equal to the *increasing adjustment if the adjustment arises in the income year in which the asset's *start time occurs.
 (3) The asset's