Document ID: chunk:federal_register_of_legislation:C2004C00927:clause:1_8:p1
Version: federal_register_of_legislation:C2004C00927
Segment Type: clause
Provision Reference: sch 1 cl 8 (pt 1/4)
Character Range: 246988–249821

8                                  40 or more                3.75%                    3%

42-140  Artworks

 (1) The *diminishing value rate for *artworks is the percentage worked out using the formula:

 (2) The *prime cost rate for *artworks is the percentage worked out using the formula:

 (3) However, the *prime cost rate for an *artwork having an *effective life of fewer than 3 years is 100%.

42-145  Scientific research

  For *plant that you acquired before 1 July 1995 and use only for scientific research in the fields of natural or applied science:
 (a) the *diminishing value rate is 50%; and
 (b) the *prime cost rate is 33%.

42-150  Employee amenities

 (1) There is a rate for *plant an entity uses mainly for providing clothing cupboards, first aid, rest-room or recreational facilities, or meals or facilities for meals for:
 (a) either or both:
 (i) employees in a *business carried on by the entity for the *purpose of producing assessable income; or
 (ii) employees in a business carried on for that purpose by a company that is a member of the same *wholly-owned group of which the entity is a member; or
 (b) *children of any of those employees.

 (2) The *diminishing value rate is 50%, and the *prime cost rate is 33%.

Subdivision 42-E—Calculation of depreciation deductions

Guide to Subdivision 42-E

42-155  What this Subdivision is about

      This Subdivision shows you how to work out the amount of a depreciation deduction. There are 2 calculation formulae: one for each calculation method.

Table of sections

Operative provisions

42-160 Diminishing value method
42-165 Prime cost method
42-170 Reducing deductions
42-175 Meaning of undeducted cost

Operative provisions

42-160  Diminishing value method

  Calculate your deduction using the formula:

  where:

opening undeducted cost is the *undeducted cost of the *plant on the first day of the income year on which you were its owner or *quasi-owner.

days owned is the number of days in the income year you were the owner or *quasi-owner of the *plant.

42-165  Prime cost method

 (1) Calculate your deduction using the formula:

  where:

days owned is the number of days in the income year you were the owner or *quasi-owner of the *plant.

 (2) However, if you are using the 100% rate, your deduction is your *cost.

 (3) In applying this section, the *cost of the *plant is reduced by:
 (a) any amount that you choose under section 42-285 or 42-290 (balancing adjustment relief) to treat as having been deducted for depreciation of the plant; and
 (b) any amount you are taken to have deducted for depreciation of the plant under subsection 42-48(2) (debt forgiveness).

Note: You cannot deduct more than the undeducted cost of the plant.

42-170  Reducing deductions

General

 (1) Reduce your deduction by an amount that