Document ID: chunk:federal_register_of_legislation:C2024C00267:section:3:p62
Version: federal_register_of_legislation:C2024C00267
Segment Type: section
Provision Reference: s 3 (pt 62/64)
Character Range: 551460–554212

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 expenditure
 (5) For the purposes of paragraph (1)(b) or (3)(b), in working out whether you can deduct an amount of expenditure assume that:
 (a) you will continue to hold the asset throughout its effective life; and
 (b) throughout that effective life, you will use it for a taxable purpose:
 (i) for the purposes of paragraph (1)(b)—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; or
 (ii) for the purposes of paragraph (3)(b)—to the same extent as you use it for a taxable purpose in the income year in which the expenditure is incurred.

Excluded assets and expenditure
 (6) The following kinds of assets and expenditure are excluded by this subsection:
 (a) an asset that can use a fossil fuel (other than a use of which that is merely incidental);
 (b) expenditure (other than expenditure referred to in subparagraph (3)(e)(i)) on an asset that can use a fossil fuel (other than a use of which that is merely incidental);
 (c) an asset that solely or predominantly generates electricity from a renewable source (for example, photovoltaic cells) or expenditure on such an asset;
 (d) an asset, or expenditure, being capital works for which you can deduct an amount under Division 43 of the Income Tax Assessment Act 1997;
 (e) a motor vehicle or expenditure on a motor vehicle;
 (f) an asset, or expenditure on an asset, where expenditure on the asset is allocated to a software development pool;
 (g) financing costs, including interest, payments in the nature of interest and expenses of borrowing.
Note: Subsections (1) and (3) also do not apply to an item of trading stock because such an asset is not a depreciating asset: see section 40‑30 of the Income Tax Assessment Act 1997.

Division 355—Research and Development

Table of Subdivisions
355‑D Registration for activities before 2011‑12 income year
355‑E Balancing adjustments for decline in value deductions for assets used in R&D activities
355‑F Integrity rules
355‑K Modified application of the old R&D law
355‑M Undeducted core technology expenditure

Subdivision 355‑D—Registration for activities before 2011‑12 income year

Table of sections
355‑200 Registration for activities before 2011‑12 income year

355‑200  Registration for activities before 2011‑12 income year
  A reference in each of the following provisions of the Income Tax Assessment Act 1997 to a registration under section 27A of the Industry