Document ID: chunk:federal_register_of_legislation:C2004C00927:clause:6_2:p1
Version: federal_register_of_legislation:C2004C00927
Segment Type: clause
Provision Reference: sch 6 cl 2 (pt 1/10)
Character Range: 581982–584873

2  Before Division 43
Insert:

Division 42—Depreciation

Table of sections

42-1 Definitions
42-2 Application of Division 42 of the 1997 Act
42-6 General transitional provision
42-7 Special rules for plant used but not depreciated before the 1997-98 income year
42-8 Rules where Common rule 1 applies
42-9 Amounts deducted under old law taken to be amounts deducted under new law
42-18 Meaning of plant
42-45 Exclusions
42-48 Debt forgiveness: amounts deducted for depreciation
42-70 Adjustment: acquiring a car at a discount
42-80 Adjustment: car depreciation limit
42-90 Adjustment: previously depreciated plant limit
42-95 Application of Subdivision 42-C of the 1997 Act
42-110 Commissioner's determination of effective life
42-120 Which rate do you use? (application of old transitional provision)
42-175 Meaning of undeducted cost
42-195 Deducting an amount
42-215 Adjustment: car depreciation limit
42-220 Plant used for research and development
42-235 Balancing adjustments for cars
42-255 Meaning of notional depreciation amount
42-280 Additional consequence of Common rule 1
42-290 Later year relief
42-310 Meaning of quasi-owner
42-355 Creating a pool
42-360 Allocating plant to a pool
42-365 What plant is eligible for allocation to a pool?
42-370 Removal of plant from a pool
42-375 Calculating depreciation deductions for pooled plant
42-380 Meaning of opening balance
42-400 Whether plant acquired or constructed after 26 February 1992
42-405 Modifying Common rule 1 so that it may apply to a disposal of plant under the new depreciation provisions
42-410 Application of Common rule 2 where amounts deducted only under the old depreciation provisions
42-415 Meaning of associate

42-1  Definitions

  In this Division:

1997 Act means the Income Tax Assessment Act 1997.

1936 Act means the Income Tax Assessment Act 1936.

new depreciation provisions means the provisions of Division 42 of the 1997 Act.

old depreciation provisions means:
 (a) sections 54 to 62AAV (inclusive) of the 1936 Act; and
 (b) relevant transitional provisions in Acts that amended that Act.

42-2  Application of Division 42 of the 1997 Act

 (1) The provisions of Division 42 of the 1997 Act apply to assessments for the 1997-98 income year and later income years.

 (2) However, that Division does not apply to a ship for an income year if a deduction under, or a deduction calculated in accordance with, section 57AM of the 1936 Act is allowable for the ship for the income year.

Note: Deductions for these ships continue to be calculated under the 1936 Act. See subsection 53I(2) of the 1936 Act.

42-6  General transitional provision

 (1) The following subsections have effect if you have deducted or can deduct an amount for depreciation of plant:
 (a) under the old depreciation provisions; or
 (b) using the "log book" method or the "one-third of actual expenses" method under section