Document ID: chunk:federal_register_of_legislation:C2004A02159:body:0:p2
Version: federal_register_of_legislation:C2004A02159
Segment Type: other
Provision Reference: 
Character Range: 2484–5022

that divisible deduction as bears to the amount of that divisible deduction the same proportion as the number of whole days (if any) in that relevant period during which the property was owned by the company and used by the company for the purpose of producing assessable income or installed ready for use for that purpose and held in reserve bears to the number of whole days during the year of income during which the property was owned by the company and used by the company for the purpose of producing assessable income or installed ready for use and held in reserve shall be deemed to be an allowable deduction in respect of that relevant period;
          "(bb) where a divisible deduction is allowable to the company in relation to the year of income in accordance with section 57ae in respect of property and the year of income is not the first year of income in which a deduction is allowable to the company in respect of that property in accordance with that section, so much of the amount of that divisible deduction as bears to the amount of that divisible deduction the same proportion as the number of whole days (if any) in that relevant period bears to 365 shall be deemed to be an allowable deduction in respect of that relevant period;".
(2) The amendments made by sub-section (1) apply to assessments in respect of income of the year of income in which 22 August 1979 occurred and in respect of income of all subsequent years of income.

Calculation of depreciation
6. (1) Section 56 of the Principal Act is amended—
(a) by inserting after sub-section (1) the following sub-sections:
    "(1a) Where the unit of property is dealt with by the taxpayer in the prescribed manner during part only of the year of income, the depreciation allowable to the taxpayer in accordance with sub-section (1) in respect of the property in relation to the year of income shall be reduced by so much of the amount of the depreciation applicable in accordance with sub-section (1) as bears to that amount the same proportion as the number of days during the year of income during which the property was not dealt with by the taxpayer in the prescribed manner bears to the number of days in the year of income.
    "(1b) For the purposes of the application of sub-sections (1) and (1a) in a case where the unit of property is not dealt with by the taxpayer in the prescribed manner on the first day of the year of income, the reference in paragraph (a) of sub-section (1) to the depreciated value of the unit of property at the beginning