Document ID: chunk:federal_register_of_legislation:C2004C00927:clause:6_2:p2
Version: federal_register_of_legislation:C2004C00927
Segment Type: clause
Provision Reference: sch 6 cl 2 (pt 2/10)
Character Range: 584625–587208

The following subsections have effect if you have deducted or can deduct an amount for depreciation of plant:
 (a) under the old depreciation provisions; or
 (b) using the "log book" method or the "one-third of actual expenses" method under section 82KUD or 82KW, or Schedule 2A, of the 1936 Act;
and you can deduct an amount for depreciation of it under the new depreciation provisions or Division 28 of the 1997 Act.

Method

 (2) You use the same method of calculation that you were using for the plant under the old depreciation provisions.

Cost

 (3) The cost of the plant is the cost you were using under the old depreciation provisions.

 (4) However, if you are using the diminishing value method for the plant and section 58 of the 1936 Act applied to its acquisition by you, the cost is:
 (a) the cost used by the transferor; or
 (b) if there were earlier successive transferors—the cost used by the earliest successive transferor.

Rate

 (5) Your rate is the annual depreciation percentage worked out under the old depreciation provisions.

 (6) However, if you are using the diminishing value method and you acquired or constructed the plant before 27 February 1992, you multiply that percentage by 1.5.

 (7) However, if you are using the prime cost method and you acquired or constructed the plant after 26 February 1992, you multiply that percentage by two thirds.

Note: Section 42-400 of this Act is relevant in working out whether plant was acquired or constructed after 26 February 1992.

42-7  Special rules for plant used but not depreciated before the 1997-98 income year

 (1) This section applies to you if:
 (a) you can first deduct an amount for depreciation of plant for the 1997-98 income year or a later income year; and
 (b) you owned and used it before that income year but:
 (i) you did not use it for the purpose of producing assessable income; or
 (ii) a provision of the 1936 Act denied a depreciation deduction for it.

Method

 (2) If section 58 of the 1936 Act applied to your acquisition of the plant, you use the method of calculation that the transferor was using or would have been required to use.

Note: However, for other plant to which this section applies, you choose your method under the 1997 Act.

Cost

 (3) The cost of the plant is the cost you would have been required to use if you had been deducting amounts for depreciation of it under the 1936 Act.

 (4) However, if you are using the diminishing value method for the plant and section 58 of the 1936 Act applied to your acquisition of the plant, the cost is:
 (a) the