Document ID: chunk:federal_register_of_legislation:C2024A00052:clause:2_1:p3
Version: federal_register_of_legislation:C2024A00052
Segment Type: clause
Provision Reference: sch 2 cl 1 (pt 3/4)
Character Range: 13099–15692

to only use electricity, or energy that is generated from a renewable source;
 (ii) if the asset uses electricity, or energy that is generated from a renewable source—the asset to be more energy efficient;
 (iii) the asset to store electricity, or energy that is generated from a renewable source;
 (iv) the asset to use electricity, or energy that is generated from a renewable source, at a different time;
 (v) the asset to monitor its use of electricity, or energy that is generated from a renewable source; and
 (f) neither the expenditure nor the asset is excluded under subsection (6); and
 (g) the only balancing adjustment events that occur for the asset at a time during the period starting on 1 July 2023 and ending on 30 June 2024 occur because you stop holding the asset because of an event or circumstance referred to in subsection 40‑365(2) (about involuntary disposals) of the Income Tax Assessment Act 1997.

Businesses with turnover under $50 million
 (4) An entity is covered by this subsection for an income year if:
 (a) the entity is not a small business entity for the income year; and
 (b) the entity would be a small business entity for the income year 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 $50 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.

Working out whether you can deduct expenditure
 (5) For the purposes of paragraph (1)(b) or (3)(b), in working out whether you can deduct an amount of expenditure assume that:
 (a) you will continue to hold the asset throughout its effective life; and
 (b) throughout that effective life, you will use it for a taxable purpose:
 (i) for the purposes of paragraph (1)(b)—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; or
 (ii) for the purposes of paragraph (3)(b)—to the same extent as you use it for a taxable purpose in the income year in which the expenditure is incurred.

Excluded assets and expenditure
 (6) The following kinds of assets and expenditure are excluded by this subsection:
 (a) an asset that can use a fossil fuel (other than a use of which that is merely incidental);
 (b) expenditure (other than expenditure referred to in subparagraph (3)(e)(i)) on an asset that can use a fossil fuel (other than a use of