Document ID: chunk:federal_register_of_legislation:C2024C00267:section:3:p20
Version: federal_register_of_legislation:C2024C00267
Segment Type: section
Provision Reference: s 3 (pt 20/50)
Character Range: 129166–131676

under the former Act up to that time; or
 (d) for expenditure on a forestry road, a timber mill building, a horticultural plant or a grapevine—the amount of that expenditure less any amounts the entity has deducted or can deduct for it under the former Act up to 30 June 2001; or
 (e) for expenditure on evaluating the impact on the environment of a project—the amount of that expenditure less any amounts the entity has deducted or can deduct for it under the former Act up to 30 June 2001; or
 (f) for assets that were pooled under Subdivision 42‑M or 42‑L of the former Act—the closing balance of the pool at the end of 30 June 2001.
 (4) The asset's base value for applying the formula in section 40‑70 of the new Act for the diminishing value method is that opening adjustable value.
 (5) The decline in value for the assets referred to in this subsection is worked out using the prime cost method without the adjustments in subsection 40‑75(3) of the new Act, and the opening adjustable value specified in subsection (3) of this section, in this way:
 (a) for an item of plant for which you were using the prime cost method—using the rules in section 40‑10 of this Act; and
 (b) for an IRU for which you were using the prime cost method—using the rules in section 40‑20 of this Act; and
 (c) for a unit of software for which the entity was deducting amounts under Subdivision 46‑B of the former Act—using the rules in subsection 40‑25(2) of this Act; and
 (d) for a spectrum licence—using the rules in section 40‑30 of this Act; and
 (e) for an item of intellectual property—using the rules in section 40‑45 of this Act; and
 (f) for an amount of expenditure on evaluating the impact on the environment of a project—using the rules in section 40‑55 of this Act.
 (6) The decline in value for the assets referred to in this subsection is worked out using the prime cost method using the adjustments in subsection 40‑75(3) of the new Act, and the opening adjustable value specified in subsection (3) of this section, in this way:
 (a) for an amount of unrecouped expenditure under Division 330 of the former Act—using the rules in section 40‑35 of this Act; and
 (b) for an amount of transport capital expenditure under Division 330 of the former Act—using the rules in section 40‑40 of this Act; and
 (c) for a forestry road or timber mill building—using the rules in section 40‑50 of this Act.
 (7) The entity must work out the decline in value of each of the assets for later income years under Division