Document ID: chunk:federal_register_of_legislation:C2024C00267:section:3:p4
Version: federal_register_of_legislation:C2024C00267
Segment Type: section
Provision Reference: s 3 (pt 4/50)
Character Range: 92452–94967

rate if you had used it, or had it installed ready for use, for the purpose of producing assessable income before that day, Division 40 of the new Act applies to the plant on this basis:
 (a) for the diminishing value method—replace the component in the formula in subsection 40‑70(1) of the new Act that includes the plant's effective life with the rate you were using; and
 (b) for the prime cost method:
 (i) replace the component in the formula in subsection 40‑75(1) of the new Act that includes the plant's effective life with the rate you were using; and
 (ii) increase the plant's cost under Division 42 of the former Act by any amounts included in the second element of the plant's cost after 30 June 2001.
Note 1: Recalculating effective life will have no practical effect for an entity to whom subsection (3) applies because the component in the relevant formula that relies on effective life has been replaced.
Note 2: Small business entities can choose to work out the decline in value of their depreciating assets under Division 328.

40‑12  Plant acquired after 30 June 2001
 (1) This section applies to you if:
 (a) you entered into a contract to acquire an item of plant before 1 July 2001 and you acquired it after 30 June 2001; or
 (b) you started to construct an item of plant before 1 July 2001 and you complete its construction after 30 June 2001.
 (2) Division 40 of the new Act applies to the plant.
 (3) If you entered into the contract, or started to construct the plant, at or before 11.45 am, by legal time in the Australian Capital Territory, on 21 September 1999, you replace the component in the formula in subsection 40‑70(1) or 40‑75(1) of the new Act that includes the plant's effective life with the rate you would have been using if you had acquired it, or completed its construction, before 1 July 2001 and had used it, or had it installed ready for use, for the purpose of producing assessable income before that day.

40‑13  Accelerated depreciation for split or merged plant
 (1) This section applies to a depreciating asset that is plant if:
 (a) you entered into a contract to acquire the plant, you otherwise acquired it or you started to construct it before 11.45 am, by legal time in the Australian Capital Territory, on 21 September 1999; and
 (b) you held it at the end of 30 June 2001; and
 (c) on or after 1 July 2001:
 (i) the plant is split into 2 or more depreciating assets; or
 (ii) the plant is merged into another depreciating asset.
 (2) For a case where the