Document ID: chunk:federal_register_of_legislation:C2009A00031:clause:1_4:p1
Version: federal_register_of_legislation:C2009A00031
Segment Type: clause
Provision Reference: sch 1 cl 4 (pt 1/5)
Character Range: 1463–4336

4  After Division 40
Insert:

Division 41—Additional deduction for certain new business investment

Guide to Division 41

41‑1  What this Division is about
      You may be able to deduct an amount in relation to a depreciating asset for the 2008‑09, 2009‑10, 2010‑11 or 2011‑12 income year if:

                (a) you can deduct an amount for the decline in value for the asset for the relevant year under Subdivision 40‑B; and
                (b) you make certain new investments in respect of the asset in the period starting on 13 December 2008 and ending on 31 December 2009; and
                (c) the total of those new investments is at least $1000 (for small businesses) or $10,000 (for other businesses).

Table of sections

Operative provisions
41‑5 Object of Division
41‑10 Entitlement to deduction for investment
41‑15 Amount of deduction
41‑20 Recognised new investment amount
41‑25 Investment commitment time
41‑30 First use time
41‑35 New investment threshold

Operative provisions

41‑5  Object of Division
  The object of this Division is to provide a temporary business tax break for Australian businesses using assets in Australia, with a view to encouraging business investment and economic activity.

41‑10  Entitlement to deduction for investment

 (1) You can deduct an amount for an income year in relation to an asset if:
 (a) the asset is a *depreciating asset, other than an intangible asset; and
 (b) you can deduct an amount under section 40‑25 in relation to the asset for the income year; and
 (c) the income year is the 2008‑09, 2009‑10, 2010‑11 or 2011‑12 income year; and
 (d) the total of the *recognised new investment amounts for the income year in relation to the asset equals or exceeds the *new investment threshold for the income year in relation to the asset.
 (2) Subsection 73BA(7) of the Income Tax Assessment Act 1936 (deductions regarding assets used in research and development activities) does not apply to a deduction under subsection (1).
 (3) For the purposes of paragraph (1)(b), in determining whether you can deduct the amount in relation to the asset under section 40‑25 for the income year:
 (a) disregard section 40‑55 if the asset is a *car for which you use the "12% of original value" method for that income year; and
 (aa) disregard section 40‑90 (reduction in cost where debt is forgiven); and
 (ab) disregard subsection 40‑365(5) (reduction in cost for replacement asset where involuntary disposal); and
 (b) disregard Subdivision 328‑D (capital allowances for small business entities); and
 (c) disregard subsection 73BA(7) of the Income Tax Assessment Act 1936 (deductions regarding assets used in research and development activities).

Counting additional recognised new investment amounts for the purposes of meeting the threshold
 (4) For the purposes of paragraph (1)(d), treat each of the following