Document ID: chunk:federal_register_of_legislation:C2004C01190:clause:1_1:p13
Version: federal_register_of_legislation:C2004C01190
Segment Type: clause
Provision Reference: sch 1 cl 1 (pt 13/18)
Character Range: 35912–38463

year (the former Act amount).

 (11) You increase the amount worked out under paragraph (2)(b) by the difference between the former Act amount and the sum amount.

40‑70  References to amounts deducted and reductions in deductions

 (1) A reference in the new Act to an amount that you have deducted or can deduct for a depreciating asset under Division 40 of the new Act includes a reference to an amount that you have deducted or can deduct for a capital allowance relating to the asset under the former Act or the Income Tax Assessment Act 1936.

 (2) An amount you have deducted or can deduct for a water facility under Subdivision 387‑B of the former Act or section 75B of the Income Tax Assessment Act 1936 is taken to have been deducted under Subdivision 40‑F of the new Act.

 (3) A reference in the new Act to a reduction in your deduction for a depreciating asset includes a reference to amounts by which your deductions for the asset were reduced under the former Act or the Income Tax Assessment Act 1936.

40‑75  Mining expenditure incurred after 1 July 2001 on an asset

 (1) This section applies to you if:
 (b) you hold a depreciating asset (except a mining, quarrying or prospecting right that you started to hold before 1 July 2001) that you:
 (i) started to hold under a contract entered into before 1 July 2001; or
 (ii) constructed where the construction started before that day; or
 (iii) started to hold in some other way before that day; and
 (c) your expenditure on the asset, whenever incurred, would have been allowable capital expenditure, transport capital expenditure or expenditure on exploration or prospecting within the meaning of Division 330 of the former Act if it had been incurred before 1 July 2001.

 (2) If you incur expenditure on the asset after 30 June 2001 that forms part of the cost of the asset, you can deduct the expenditure for the income year in which you incur it if it would have been expenditure on exploration or prospecting within the meaning of Division 330 of the former Act.

 (3) Otherwise, Subdivision 40‑B of the new Act applies to the asset on the basis that it has a cost, and an adjustable value, of zero at the start of 1 July 2001, and an effective life on that day or at its start time, whichever is the later, worked out under subsection (4) of this section.

 (4) The effective life of the depreciating asset is the shorter of its effective life worked out under Division 40 and:
 (a) if the expenditure on the asset was incurred in relation to eligible mining operations other