Document ID: chunk:federal_register_of_legislation:C2024C00267:section:3:p59
Version: federal_register_of_legislation:C2024C00267
Segment Type: section
Provision Reference: s 3 (pt 59/64)
Character Range: 544371–546966

of expenditure on a depreciating asset
 (4) For the purposes of paragraphs (1)(c) and (2)(c), in working out whether you can deduct an amount of expenditure on a depreciating asset, assume that:
 (a) you will continue to hold the asset throughout its effective life; and
 (b) throughout that effective life, you will use the asset for a taxable purpose to the same extent as you use it, or have it installed ready for use, for a taxable purpose in the income year in which you start to use it, or have it installed ready for use, for a taxable purpose.

Excluded expenditure
 (5) The following kinds of expenditure are excluded by this subsection:
 (a) salary or wage costs;
 (b) capital works costs for which you can deduct an amount under Division 43 of the Income Tax Assessment Act 1997;
 (c) financing costs, including interest, payments in the nature of interest and expenses of borrowing;
 (d) training or education costs;
 (e) expenditure that you incur that forms part of, or is included in, the cost of your trading stock.
Note: For deductions relating to training or education costs, see section 328‑445.

328‑465  Energy incentive
 (1) You can deduct for an income year an amount that is equal to the lower of:
 (a) 20% of the total amount (which may be nil) of your expenditure to which subsection 328‑470(1) or (3) applies in relation to the income year; and
 (b) $20,000 less any amount deducted under paragraph (a) for a previous income year.
Note: The deduction relates to the period of 1 July 2023 to 30 June 2024. An entity may have deducted an amount under paragraph (a) for a previous income year if the entity has a substituted accounting period.

These are bonus deductions under the Income Tax Assessment Act 1997
 (2) The Income Tax Assessment Act 1997 has effect as if this section and section 328‑470 of this Act were provisions of Division 25 of the Income Tax Assessment Act 1997.
 (3) Sections 8‑10, 40‑215 and 355‑715 of the Income Tax Assessment Act 1997 do not apply in relation to a deduction under this section.

328‑470  What expenditure qualifies for the energy incentive

Expenditure included in the first element of cost of a depreciating asset
 (1) This subsection applies to an amount of expenditure in relation to an income year if:
 (a) the expenditure is included in the first element of cost of a depreciating asset; and
 (b) you can deduct the expenditure under a provision of a taxation law (other than section 328‑465 of this Act) whether or not in, or wholly in, the income year in which the expenditure is incurred; and
 (c) you start to use the