Document ID: chunk:federal_register_of_legislation:C2004A00846:clause:1_1:p5
Version: federal_register_of_legislation:C2004A00846
Segment Type: clause
Provision Reference: sch 1 cl 1 (pt 5/21)
Character Range: 11699–14476

Guide.]

Operative provisions

328‑175  Calculations for depreciating assets

 (1) You calculate your deductions and some amounts of assessable income under this Subdivision instead of under Division 40 for an income year for a *depreciating asset that you *hold if:
 (a) you are an *STS taxpayer for the income year; and
 (b) you started to use the asset, or have it *installed ready for use, for a *taxable purpose during or before that income year.

Note: You continue to use this Subdivision for your STS pools after you leave the STS: see section 328‑220.

Exception: assets to which Division 40 does not apply

 (2) This Subdivision does not apply to a *depreciating asset to which Division 40 does not apply because of section 40‑45.

Exception: primary production

 (3) If you are an *STS taxpayer for the income year, for each *depreciating asset you use to carry on a *primary production business and for which you could deduct amounts under Subdivision 40‑F (about primary production depreciating assets) or Subdivision 40‑G (about capital expenditure of primary producers and other landholders) apart from subsection (1), you can choose:
 (a) to deduct amounts for it under Subdivision 40‑F or 40‑G; or
 (b) to calculate your deductions for it under this Subdivision.

 (4) You must make that choice for each *depreciating asset of that kind for the later of:
 (a) the first income year for which you are, or last became, an *STS taxpayer; or
 (b) the income year in which you started to use the asset, or have it *installed ready for use, for a *taxable purpose.
Once you have made the choice for an asset, you cannot change it.

Exception: horticultural plants

 (5) You cannot deduct amounts for *horticultural plants (including grapevines) under this Subdivision.

Exception: asset let on depreciating asset lease

 (6) You cannot deduct amounts for a *depreciating asset under this Subdivision if the asset is being or is intended to be let predominantly on a *depreciating asset lease.

Exception: assets in a low‑value or software development pool

 (7) You cannot deduct amounts for a *depreciating asset under this Subdivision if:
 (a) the asset was allocated to your low‑value pool under Subdivision 40‑E, or to your pool under the former Subdivision 42‑L, before you became an *STS taxpayer; or
 (b) the asset is *in‑house software and expenditure on the asset is allocated to a software development pool under that Subdivision.

Note: You will have to continue deducting amounts for these assets under Division 40.

 (8) A *depreciating asset referred to in subsection (7) is not allocated to a pool under this Subdivision and does not qualify for a deduction under section 328‑180.

328‑180  Low cost assets

 (1) You deduct the *taxable purpose