Document ID: chunk:federal_register_of_legislation:C2024C00267:section:3:p39
Version: federal_register_of_legislation:C2024C00267
Segment Type: section
Provision Reference: s 3 (pt 39/50)
Character Range: 173302–175948

out under subsection (4); or
 (c) otherwise—the amount worked out under subsection (5).

Assets affected by section 40‑82 of the Income Tax Assessment Act 1997 (about assets costing less than $150,000, medium sized businesses)
 (3) If this subsection applies, the amount for the current year is the sum of:
 (a) the amount that would be the asset's decline in value for the year under section 40‑82 of the Income Tax Assessment Act 1997, assuming the reference in subparagraph 40‑82(3A)(b)(ii) of that Act to 31 December 2020 were instead a reference to the 2020 budget time; and
 (b) the eligible second element worked out under section 40‑175 of this Act for the asset for the year.

Assets affected by Subdivision 40‑BA (backing business investment)
 (4) If this subsection applies, the amount for the current year is the sum of:
 (a) the amount that would be worked out under paragraph 40‑130(2)(a) or (4)(a) (whichever is applicable) for the year, assuming the references in paragraphs 40‑130(2)(a) and (4)(a) to 30 June 2021 were instead references to the 2020 budget time; and
 (b) the eligible second element worked out under section 40‑175 for the asset for the year; and
 (c) the amount that would be worked out under paragraph 40‑130(2)(b) or (4)(b) (whichever is applicable) for the year, assuming the references in paragraphs 40‑130(2)(b) and (4)(b) to "the amount worked out under paragraph (a)" were instead references to "the amounts worked out under paragraphs 40‑170(4)(a) and (b)".

Other assets
 (5) If this subsection applies, the amount for the current year is the sum of:
 (a) the amount that would be the asset's decline in value for the year under Division 40 of the Income Tax Assessment Act 1997, disregarding any amounts included in the eligible second element worked out under section 40‑175 of this Act for the asset for the year; and
 (b) the eligible second element worked out under section 40‑175 for the asset for the year.

40‑175  When is an amount included in the eligible second element
  The amount worked out under this section (the eligible second element) for a depreciating asset for an income year is the sum of any amounts included in the second element of the asset's cost at a time that is in both of the following periods:
 (a) the income year;
 (b) the period beginning at the 2020 budget time and ending on 30 June 2023.

40‑180  Division 40 of the Income Tax Assessment Act 1997 applies to later years
 (1) For an income year later than a year in which the decline in value is worked out under this Subdivision, the decline in value is worked out under the other provisions of Division 40 of the