Document ID: chunk:federal_register_of_legislation:C2024C00267:section:3:p61
Version: federal_register_of_legislation:C2024C00267
Segment Type: section
Provision Reference: s 3 (pt 61/64)
Character Range: 549089–551700

generated from a renewable source, by another depreciating asset to be monitored.

Certain expenditure that is included in the second element of cost of a depreciating asset
 (3) This subsection applies to an amount of expenditure in relation to an income year if:
 (a) the amount is included in the second element of a depreciating asset's cost under paragraph 40‑190(2)(a) of the Income Tax Assessment Act 1997; and
 (b) you can deduct the expenditure under a provision of a taxation law (other than section 328‑465 of this Act) whether or not in, or wholly in, the income year in which the expenditure is incurred; and
 (c) the expenditure is incurred:
 (i) in the income year; and
 (ii) after 30 June 2023 but before 1 July 2024; and
 (d) you are a small business entity, or an entity covered by subsection (4), for the income year in which the expenditure is incurred; and
 (e) the expenditure enables one or more of the following:
 (i) if the asset could use a fossil fuel (other than a use of which that is merely incidental)—the asset to only use electricity, or energy that is generated from a renewable source;
 (ii) if the asset uses electricity, or energy that is generated from a renewable source—the asset to be more energy efficient;
 (iii) the asset to store electricity, or energy that is generated from a renewable source;
 (iv) the asset to use electricity, or energy that is generated from a renewable source, at a different time;
 (v) the asset to monitor its use of electricity, or energy that is generated from a renewable source; and
 (f) neither the expenditure nor the asset is excluded under subsection (6); and
 (g) the only balancing adjustment events that occur for the asset at a time during the period starting on 1 July 2023 and ending on 30 June 2024 occur because you stop holding the asset because of an event or circumstance referred to in subsection 40‑365(2) (about involuntary disposals) of the Income Tax Assessment Act 1997.

Businesses with turnover under $50 million
 (4) An entity is covered by this subsection for an income year if:
 (a) the entity is not a small business entity for the income year; and
 (b) the entity would be a small business entity for the income year if:
 (i) each reference in Subdivision 328‑C of the Income Tax Assessment Act 1997 (about what is a small business entity) to $10 million were instead a reference to $50 million; and
 (ii) the reference in paragraph 328‑110(5)(b) of that Act to a small business entity were instead a reference to an entity covered by this subsection.

Working out whether you can deduct expenditure
 (5) For