Document ID: chunk:federal_register_of_legislation:C2004C01190:clause:2_216:p1
Version: federal_register_of_legislation:C2004C01190
Segment Type: clause
Provision Reference: sch 2 cl 216 (pt 1/8)
Character Range: 134103–136871

216  At the end of Division 27
Add:

27‑35  Certain sections not to apply to certain assets or expenditure

  Sections 27‑5, 27‑10, 27‑15 and 27‑20 do not apply to assets, or to expenditure, for which you can deduct amounts under Division 40 or 328.

Note: See instead Subdivision 27‑B.

Subdivision 27‑B—Division 40

Table of sections

27‑80 Cost or opening adjustable value of depreciating assets reduced for input tax credits
27‑85 Cost or opening adjustable value of depreciating assets reduced: decreasing adjustments
27‑90 Cost or opening adjustable value of depreciating assets increased: increasing adjustments
27‑95 Balancing adjustment events
27‑100 Pooling
27‑105 Other Division 40 expenditure
27‑110 Input tax credit etc. relating to 2 or more things

27‑80  Cost or opening adjustable value of depreciating assets reduced for input tax credits

 (1) A *depreciating asset's *cost is reduced if:
 (a) an entity's acquisition or importation of the asset constitutes a *creditable acquisition or *creditable importation; and
 (b) the entity is or becomes entitled to an *input tax credit for the acquisition or importation; and
 (c) the entity can deduct amounts for the asset under Division 40 or 328.
The reduction is the amount of the input tax credit.

 (2) A *depreciating asset's *cost is also reduced if:
 (a) the entity that *holds the asset incurs expenditure that is included in the second element of the asset's cost for the income year in which the asset's *start time occurs; and
 (b) the entity is or becomes entitled to an *input tax credit for the *creditable acquisition or *creditable importation to which the expenditure relates; and
 (c) the entity can deduct amounts for the asset under Division 40 or 328.
The reduction is the amount of the input tax credit.

 (3) However, subsections (1) and (2) do not apply if the *cost of the *depreciating asset is modified under Division 40 to be its *market value.

 (3A) A *depreciating asset's *opening adjustable value for an income year is reduced if:
 (a) an entity's acquisition or importation of the asset constitutes a *creditable acquisition or *creditable importation; and
 (b) the entity is or becomes entitled to an *input tax credit in an income year (the credit year) for the acquisition or importation and the credit year occurs after the income year in which the acquisition or importation occurred; and
 (c) the income year is after the one in which the asset's *start time occurs; and
 (d) the entity can deduct amounts for the asset under Division 40 or 328.

 (4) A *depreciating asset's *opening adjustable value for an income year is reduced if:
 (a) the entity that *holds the asset incurs expenditure that is included in the second element of the asset's cost for that