Document ID: chunk:federal_register_of_legislation:C2004A04733:body:0:p7
Version: federal_register_of_legislation:C2004A04733
Segment Type: other
Provision Reference: 
Character Range: 15367–18119

or principally for the purpose of engaging in an activity referred to in paragraph 25(2)(a), (b), (c) or (d); and

        (k) expenditure that was incurred by the employer in relation to hiring or leasing equipment and is directly attributable to a period during which the equipment was used solely or principally for the purpose of engaging in an activity referred to in paragraph 25(2)(a), (b), (c) or (d).";

     (b) by omitting from subsection (2) everything after "equal to" and substituting the following:

    "the depreciation that would be allowable to the employer under the Income Tax Assessment Act 1936 in respect of the property in relation to the year concerned if:

         (a) the employer used the property, during the whole of the year concerned, for the purpose of producing assessable income within the meaning of that Act; and

         (b) that year were a year of income, within the meaning of that Act, of the employer.".

12. After section 26 of the Principal Act the following section is inserted:

Eligible training expenditure consisting of depreciation in respect of certain property

"26A.(1) If, during a year, an employer incurs capital expenditure that (otherwise than because of subsection 26(2)) is not eligible training expenditure of the employer but is directly attributable to the acquisition, construction, extension, alteration or improvement of depreciable property, this section applies to the property in relation to each year ('the year of use'):

  (a) that is the first-mentioned year or a later year; and

    (b) during some or all of which the employer uses the property solely or principally for the purpose of engaging in an activity referred to in paragraph 25(2)(a), (b), (c) or (d).

"(2) An amount worked out using the following formula is eligible training expenditure incurred by the employer in the year of use:

where:

'Eligible use days' means the total number of days in the year of use on which the employer uses the property as mentioned in paragraph (1)(b);

'Days in year of use' means the number of days in the year of use;

'Depreciation' means the depreciation that would be allowable to the employer under the Income Tax Assessment Act 1936 in respect of the property in relation to the year of use if:

    (a) the employer used the property, during the whole of the year of use, for the purpose of producing assessable income within the meaning of that Act; and

    (b) that year were a year of income, within the meaning of that Act, of the employer.".

Meaning of eligible training program

13. Section 27 of the Principal Act is amended by omitting from paragraph (2)(a) "is appropriately qualified or experienced to design a training program of the relevant type;" and