Document ID: chunk:federal_register_of_legislation:C2005C00282:clause:2_39:p2
Version: federal_register_of_legislation:C2005C00282
Segment Type: clause
Provision Reference: sch 2 cl 39 (pt 2/2)
Character Range: 45132–47100

the carrying on by or on behalf of that person of research and development activities.

Third change

 (5) The third change is that the reference in section 42‑195 to the extent to which you used the plant other than for the purpose of producing assessable income is instead a reference to the extent to which you used the plant other than for that purpose or the purpose of the carrying on by or on behalf of you of research and development activities.

Increase in amounts deductible or certain assessable amounts where 1.25 rate deductions under section 73BH

 (6) If:
 (a) this section applies; and
 (b) the amount you have deducted or can deduct for the *plant under section 73BH of the Income Tax Assessment Act 1936, as mentioned in subsection (1) of this section, for at least one income year was worked out by multiplying a notional Division 42 deduction (within the meaning of section 73BJ) by 1.25;
then subsection (7) applies.

 (7) Any amount (the eligible assessable/deductible amount) included in your assessable income for the plant under section 42‑190 (as applied in accordance with subsection (2) of this section), or any amount you can deduct for the *plant under section 42‑195 or 42‑197 (as applied in accordance with subsection (2) of this section), is increased by the amount worked out using the formula:
where:

sum of all 1.25 rate notional Division 42 deductions means the sum of all notional Division 42 deductions (see paragraph (6)(b)) that were multiplied by 1.25 in working out the amounts you have deducted or can deduct for the plant as mentioned in subsection (1).

total decline in value means the *cost of the plant, less its *undeducted cost, just before the balancing adjustment event (after applying subsection (2) of this section).

Note: The heading to section 42‑220 is replaced by the following heading "Plant for which there are deductions under section 73B of Income Tax Assessment Act 1936 (research and development)".