Document ID: chunk:federal_register_of_legislation:C2025C00014:section:159gj:p1
Version: federal_register_of_legislation:C2025C00014
Segment Type: section
Provision Reference: s 159GJ (pt 1/7)
Character Range: 1374603–1377412

159GJ  Effect of application of Division on certain deductions etc.
 (1) Where this Division applies in relation to an item of eligible depreciation property:
 (b) in relation to any year of income the whole of which is included in or comprises the application period—no depreciation deduction shall be allowable to any taxpayer in relation to the item of property for that year of income;
 (c) in relation to any other year of income in which the whole or a part of the application period occurs:
 (i) in relation to any part (in this subsection referred to as the pre‑application part) of the year of income that precedes the application period—there shall be allowable to a taxpayer as a depreciation deduction in relation to the item of property:
 (A) where this Division has not previously applied in relation to the item of property—the same depreciation deduction (if any) as would, apart from this Division, be allowable to the taxpayer; and
 (B) in any other case—the same depreciation deduction (if any) as would, but for this application of this section, be allowable to the taxpayer;
 (ii) in relation to the part of the year of income during which this Division applies—no depreciation deduction shall be allowable to any taxpayer in relation to the item of property; and
 (iii) in relation to any part (in this subsection referred to as the post‑application part) of the year of income that occurs after the application period (not being a part that occurs after the commencement of a subsequent application period):
 (A) the residual amount in relation to the item of eligible depreciation property at any time (in this sub‑subparagraph referred to as the relevant time) during the post‑application part is an amount ascertained in accordance with the formula:

  where:
  A is the amount that, but for this application of this section, would be the residual amount at the relevant time in relation to the eligible amount (in this subparagraph referred to as the relevant eligible amount) by reason of which the item is an item of eligible depreciation property.
  B is:
                     (a) where paragraph (b) of this component does not apply—the amount that, in determining the residual amount in component A, would be taken into account as depreciation under subsection 159GF(1) in respect of the application period; and
                     (b) where, in determining the residual amount in component A, depreciation deductions taken into account in respect of the post‑application part would be calculated under this Act or the Income Tax Assessment Act 1997 using the diminishing value method—the amount that, in determining the residual amount in component A, would be taken into account under subsection 159GF(1) as depreciation deductions in respect of the application period and