Document ID: chunk:federal_register_of_legislation:C2004C01190:clause:1_1:p3
Version: federal_register_of_legislation:C2004C01190
Segment Type: clause
Provision Reference: sch 1 cl 1 (pt 3/18)
Character Range: 12860–15344

40‑15  Recalculating effective life

  You cannot recalculate the effective life of a depreciating asset for which:
 (a) you were using, just before 1 July 2001, a rate under subsection 42‑160(1) or 42‑165(1) of the former Act; or
 (b) you would have been using such a rate if you had used the asset, or had it installed ready for use, for the purpose of producing assessable income before that day.

40‑20  IRUs

 (1) This section applies to you if:
 (a) you have deducted or can deduct an amount for an IRU under Division 44 of the former Act; and
 (b) you hold the IRU at 1 July 2001.

 (2) Division 40 of the new Act applies to the IRU on this basis:
 (a) you use the cost, effective life and method you were using under Division 44 of the former Act; and
 (b) the amount that was your undeducted cost of the IRU at the end of 30 June 2001 becomes the IRU's opening adjustable value.

Note: There are special rules for entities that have substituted accounting periods: see section 40‑65.

40‑25  Software

 (1) Despite its repeal by this Act, Division 46 of the former Act continues to apply to expenditure on software that you incurred and that was in a software pool under that Division at the end of 30 June 2001.

 (2) For a unit of software for which you were deducting amounts under Subdivision 46‑B of the former Act, Subdivision 40‑B of the new Act applies to the unit on this basis:
 (a) its cost is the amount of expenditure you incurred on the unit; and
 (b) you must use the prime cost method; and
 (c) its opening adjustable value at 1 July 2001 is its undeducted cost at the end of 30 June 2001; and
 (d) you must use the same effective life you were using under Subdivision 46‑B of the former Act.

Note: There are special rules for entities that have substituted accounting periods: see section 40‑65.

40‑30  Spectrum licences

 (1) This section applies to you if you have deducted or can deduct an amount under Division 380 of the former Act for expenditure incurred in obtaining a spectrum licence on or before 30 June 2001.

 (2) Subdivision 40‑B of the new Act applies to the spectrum licence on this basis:
 (a) its cost is your expenditure incurred in obtaining the licence; and
 (b) its opening adjustable value at 1 July 2001 is the amount of unrecouped expenditure for the licence at the end of 30 June 2001; and
 (c) its effective life is the same as it had under the former Act; and
 (d) you must use the prime cost method.

Note: There are special