Document ID: chunk:federal_register_of_legislation:C2021C00270:clause:7_1:p6
Version: federal_register_of_legislation:C2021C00270
Segment Type: clause
Provision Reference: sch 7 cl 1 (pt 6/6)
Character Range: 114089–115901

instead references to "the amounts worked out under paragraphs 40‑170(4)(a) and (b)".

Other assets
 (5) If this subsection applies, the amount for the current year is the sum of:
 (a) the amount that would be the asset's decline in value for the year under Division 40 of the Income Tax Assessment Act 1997, disregarding any amounts included in the eligible second element worked out under section 40‑175 of this Act for the asset for the year; and
 (b) the eligible second element worked out under section 40‑175 for the asset for the year.

40‑175  When is an amount included in the eligible second element
  The amount worked out under this section (the eligible second element) for a depreciating asset for an income year is the sum of any amounts included in the second element of the asset's cost at a time that is in both of the following periods:
 (a) the income year;
 (b) the period beginning at the 2020 budget time and ending on 30 June 2022.

40‑180  Division 40 of the Income Tax Assessment Act 1997 applies to later years
 (1) For an income year later than a year in which the decline in value is worked out under this Subdivision, the decline in value is worked out under the other provisions of Division 40 of the Income Tax Assessment Act 1997.

Adjustment required for prime cost method
 (2) If you use the prime cost method for the asset, you must adjust the formula in subsection 40‑75(1) of the Income Tax Assessment Act 1997 for the later year in the manner set out in subsection 40‑75(3) of that Act. The later year is the change year referred to in that subsection.

Balancing adjustment provisions
 (3) Subdivision 40‑D of the Income Tax Assessment Act 1997 has effect as if the decline in value worked out under this Subdivision had been worked out under Subdivision 40‑B of that Act.