Document ID: chunk:federal_register_of_legislation:C2004C00958:clause:1_7:p1
Version: federal_register_of_legislation:C2004C00958
Segment Type: clause
Provision Reference: sch 1 cl 7 (pt 1/3)
Character Range: 598196–601172

7  Section 330‑605 (link note)
Repeal the link note, substitute:

[The next Division is Division 373.]

Division 373—Intellectual property

Table of Subdivisions

 Guide to Division 373

373‑A Deductions for registering items of intellectual property

373‑B Deductions for capital expenditure on intellectual property

373‑C Partial realisation of item of intellectual property

373‑D Balancing adjustments

373‑E Application of Common rules

373‑F Adjustments affecting your deductions under this Division

Guide to Division 373

373‑1  What this Division is about

      This Division creates a capital allowance for expenditure on an item of intellectual property that you use (or have used) for the purpose of producing assessable income.

                  Note 1:  In some cases, you get a deduction even if you acquired the item for nothing.

                  Note 2: Division 40 sets out an overview of capital allowances.

      You can also deduct expenditure you incur in being granted a patent or in registering a design or copyright.

      In certain cases, this Division includes an amount in your assessable income to reverse the effect of deductions under it.

      See Subdivisions 373‑C and 373‑D.

Subdivision 373‑A—Deductions for registering items of intellectual property

Table of sections

373‑5 Expenditure incurred in registering an item

373‑5  Expenditure incurred in registering an item

 (1) You can deduct expenditure you incur in the income year in seeking to obtain, or in obtaining:

 (a) the grant of a patent, or the extension of the term of the grant; or

 (b) the registration of a design, or the extension of the period of registration; or

 (c) the registration of a copyright.

 (2) But you can only deduct the expenditure to the extent that you incur it for the *purpose of producing assessable income.

Subdivision 373‑B—Deductions for capital expenditure on intellectual property

Table of sections

373‑10 Conditions for deduction
373‑15 Meaning of item of intellectual property
373‑20 How much you can deduct
373‑25 Meaning of unrecouped expenditure
373‑30 Meaning of expenditure on the item
373‑35 Effective life of intellectual property

373‑10  Conditions for deduction

 (1) You can deduct an amount for the *current year for your *expenditure on an item of *intellectual property if you have ever used for the *purpose of producing assessable income either:

 (a) the item itself; or

 (b) the invention, design, work or other subject matter to which the item relates.

Note 1: In some cases, you may be treated as having incurred expenditure on an item even if you acquired it for nothing: see Cases 5 to 9 in the table in subsection 373‑30(2).

Note 2: Your expenditure does not include expenditure covered by Subdivision 373‑A (expenditure incurred in registering the item).

 (2) However, you cannot deduct an amount under this section if:

 (a) during the *current year or an earlier income