Document ID: chunk:federal_register_of_legislation:C2025C00029:section:10:p10
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 10 (pt 10/17)
Character Range: 886248–888742

value for the current year and any amount included in the second element of its cost for the current year.
 (2A) The decline in value of a *depreciating asset you *hold for the income year (the current year) in which you start to use the asset, or have it *installed ready for use, for a *taxable purpose is the amount worked out under subsection (2B) if:
 (a) you are an entity covered by subsection (4) (about medium sized businesses), or by subsection (4A) (about medium sized businesses and certain assets) in relation to the asset, for:
 (i) the current year; and
 (ii) the income year in which you started to hold the asset; and
 (b) you first acquired the asset:
 (i) at or after 7.30 pm, by legal time in the Australian Capital Territory, on 2 April 2019; and
 (ii) on or before 31 December 2020; and
 (c) the current year ends on or after 12 March 2020; and
 (d) you start to use the asset, or have it installed ready for use, for a taxable purpose:
 (i) on or after 12 March 2020; and
 (ii) on or before 30 June 2021; and
 (e) the asset is a depreciating asset whose *cost as at the end of the earlier of:
 (i) the end of the current year; and
 (ii) 31 December 2020;
  is less than $150,000.
Note 1: The amount you can deduct may be reduced by other provisions, such as subsection 40‑25(2) (about taxable purpose) and section 40‑215 (about double deductions).
Note 2: This subsection does not apply if Subdivision 40‑BB of the Income Tax (Transitional Provisions) Act 1997 applies: see section 40‑145 of that Act.
 (2B) The amount is:
 (a) unless paragraph (b) applies—the asset's *cost as at the earlier of:
 (i) the end of the current year; and
 (ii) 31 December 2020; or
 (b) if the asset's *start time occurred in an earlier income year—the sum of:
 (i) the asset's *opening adjustable value for the current year; and
 (ii) any amount included in the second element of the asset's cost for the current year, other than an amount included after 31 December 2020.

Later year
 (3) The decline in value of a *depreciating asset you *hold for an income year (the later year) is the first amount included in the second element of the asset's *cost for the later year if:
 (a) you are an entity covered by subsection (4) (about medium sized businesses) for the later year; and
 (aa) the amount is included before 12 March 2020; and
 (b) the amount included is less than $30,000; and
 (c) you worked out the decline in value of the asset for an earlier income year under subsection (1);