Document ID: chunk:federal_register_of_legislation:C2004C01190:clause:1_1:p17
Version: federal_register_of_legislation:C2004C01190
Segment Type: clause
Provision Reference: sch 1 cl 1 (pt 17/18)
Character Range: 45277–47797

or
 (iii) because of section 118‑12 (about plant used to produce exempt income); or
 (iv) because the asset was a pre‑CGT asset at the time of the balancing adjustment event.

 (6) The reduction is:
where:

sum of reductions is the sum of the reductions in your deductions for the asset because you did not use it for a particular purpose.

total decline is the decline in value of the depreciating asset since you started to hold it.

 (7) Section 118‑24 of the new Act applies to CGT event A1 (disposal of a CGT asset) happening to a depreciating asset if the event happens:
 (a) if the depreciating asset is plant—at or before 11.45 am, by legal time in the Australian Capital Territory, on 21 September 1999; or
 (b) if the depreciating asset is not plant—before 1 July 2001;
where:
 (c) the time of the event is when you entered into the contract for the disposal of the asset; and
 (d) the change in ownership constituting the disposal occurred after the applicable time mentioned in paragraph (a) or (b).

40‑290  Reduction of deductions under former Act etc.

  Subsection 40‑290(2) of the new Act has effect in relation to a depreciating asset that you held at 1 July 2001 as if:
 (a) any amount by which your deductions for the asset were reduced under the former Act or the Income Tax Assessment Act 1936 because you did not use it for a particular purpose were an amount by which your deductions for the asset were reduced under section 40‑25 of the new Act; and
 (b) the total decline element of the formula in that subsection included all amounts you have deducted or can deduct for the asset under the former Act or the Income Tax Assessment Act 1936.

40‑295  Later year relief

 (1) You may exclude an amount that has been included in your assessable income for plant as a result of a balancing adjustment event that occurred in your 1999‑2000 or 2000‑01 income year to the extent that you choose under section 42‑290 of the former Act to treat that amount as an amount you have deducted for the decline in value of replacement plant.

 (2) You can only make this choice for the replacement plant if:
 (a) you acquire it:
 (i) within 2 income years after the end of the income year in which the balancing adjustment event occurred; and
 (ii) in your 2001‑02 or 2002‑2003 income year; and
 (b) at the end of the income year in which you acquired it, you used it, or had it installed ready for use, wholly for the purpose of producing assessable income; and
 (c) you can deduct an amount for its decline