Document ID: chunk:federal_register_of_legislation:C2020C00139:clause:2_7:p1
Version: federal_register_of_legislation:C2020C00139
Segment Type: clause
Provision Reference: sch 2 cl 7 (pt 1/5)
Character Range: 15032–17702

7  After Subdivision 40‑B
Insert:

40‑BA—Backing business investment

Table of sections
40‑120 Backing business investment—accelerated decline in value for businesses with turnover less than $500 million
40‑125 Backing business investment—when an asset of yours qualifies
40‑130 Method for working out accelerated decline in value
40‑135 Division 40 of the Income Tax Assessment Act 1997 applies to later years

40‑120  Backing business investment—accelerated decline in value for businesses with turnover less than $500 million
 (1) For the purposes of Division 40 of the Income Tax Assessment Act 1997, the decline in value of a depreciating asset for an income year is the amount worked out under section 40‑130 if:
 (a) the income year is the year in which you start to use the asset, or have it installed ready for use, for a taxable purpose; and
 (b) subsection (2) (about businesses with turnover less than $500 million) applies to you for the year and for the income year in which you started to hold the asset (if that was an earlier year); and
 (c) you are covered by section 40‑125 for the asset.
Note: An effect of paragraph (1)(a) is that this Subdivision only applies to one income year per asset. See also subsection 40‑135(1).

Businesses with turnover less than $500 million
 (2) This subsection applies to you for an income year if you:
 (a) are a small business entity; or
 (b) would be a small business entity if:
 (i) each reference in Subdivision 328‑C of the Income Tax Assessment Act 1997 (about what is a small business entity) to $10 million were instead a reference to $500 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.

Exception—assets for which the decline in value is worked out under section 40‑82 or Subdivision 40‑E or 40‑F of the Income Tax Assessment Act 1997
 (3) However, this section does not apply to a depreciating asset for an income year if you work out the decline in value of the asset for the income year under any of the following:
 (a) section 40‑82 of the Income Tax Assessment Act 1997;
 (b) Subdivision 40‑E or 40‑F of that Act.

40‑125  Backing business investment—when an asset of yours qualifies
 (1) For the purposes of paragraph 40‑120(1)(c) and section 328‑182, you are covered by this section for a depreciating asset if, in the period beginning on 12 March 2020 and ending on 30 June 2021, you:
 (a) start to hold the asset; and
 (b) start to use it, or have it installed ready for use, for a taxable purpose.
Note: Section 328‑182 provides similar accelerated depreciation for small business