Document ID: chunk:federal_register_of_legislation:C2023A00029:clause:5_1:p3
Version: federal_register_of_legislation:C2023A00029
Segment Type: clause
Provision Reference: sch 5 cl 1 (pt 3/3)
Character Range: 70739–72452

million
 (3) An entity is covered by this subsection for an income year if:
 (a) the entity is not a small business entity for the income year; and
 (b) the entity would be a small business entity for the income year if:
 (i) each reference in Subdivision 328‑C of the Income Tax Assessment Act 1997 (about what is a small business entity) to $10 million were instead a reference to $50 million; and
 (ii) the reference in paragraph 328‑110(5)(b) of that Act to a small business entity were instead a reference to an entity covered by this subsection.

Working out whether you can deduct an amount of expenditure on a depreciating asset
 (4) For the purposes of paragraphs (1)(c) and (2)(c), in working out whether you can deduct an amount of expenditure on a depreciating asset, assume that:
 (a) you will continue to hold the asset throughout its effective life; and
 (b) throughout that effective life, you will use the asset for a taxable purpose to the same extent as you use it, or have it installed ready for use, for a taxable purpose in the income year in which you start to use it, or have it installed ready for use, for a taxable purpose.

Excluded expenditure
 (5) The following kinds of expenditure are excluded by this subsection:
 (a) salary or wage costs;
 (b) capital works costs for which you can deduct an amount under Division 43 of the Income Tax Assessment Act 1997;
 (c) financing costs, including interest, payments in the nature of interest and expenses of borrowing;
 (d) training or education costs;
 (e) expenditure that you incur that forms part of, or is included in, the cost of your trading stock.
Note: For deductions relating to training or education costs, see section 328‑445.