Document ID: chunk:federal_register_of_legislation:C2010C00577:clause:4_5
Version: federal_register_of_legislation:C2010C00577
Segment Type: clause
Provision Reference: sch 4 cl 5
Character Range: 52021–53939

5  After section 40‑100
Insert:

40‑102  Capped life of certain depreciating assets

 (1) If this section applies to a *depreciating asset, the effective life of the asset is the period (the capped life) that applies to the asset under subsection (4) or (5) at the relevant time (which is worked out using subsection (3)).

Working out if this section applies

 (2) This section applies to a *depreciating asset if:
 (a) you choose, under paragraph 40‑95(1)(a), to use an *effective life determined by the Commissioner for the asset under section 40‑100; and
 (b) your choice is limited to a determination in force at the time mentioned in paragraph 40‑95(2)(a) or (c); and
 (c) a *capped life applies to the asset under subsection (4) or (5) at the relevant time (which is worked out using subsection (3)); and
 (d) the capped life is shorter than the effective life mentioned in paragraph (a).

 (3) For the purposes of this section, the relevant time is:
 (a) the *start time of the *depreciating asset if:
 (i) paragraph 40‑95(2)(c) applies to you; or
 (ii) paragraph 40‑95(2)(a) applies to you and a *capped life does not apply to the asset under subsection (4) or (5) at the time mentioned in that paragraph; or
 (iii) paragraph 40‑95(2)(a) applies to you and the capped life that applies to the asset under subsection (4) or (5) at the time mentioned in that paragraph is longer than the capped life that applies to the asset at its start time; or
 (b) if paragraph (a) does not apply—the time mentioned in paragraph 40‑95(2)(a).

Capped life

 (4) If the *depreciating asset corresponds exactly to the description in column 2 of the table, the capped life of the asset is the period specified in column 3 of the table.

Capped life of certain depreciating assets
Item                                        Kind of depreciating asset                                                                   Period