Document ID: chunk:federal_register_of_legislation:C2004C01190:clause:1_1:p4
Version: federal_register_of_legislation:C2004C01190
Segment Type: clause
Provision Reference: sch 1 cl 1 (pt 4/18)
Character Range: 15136–17661

unrecouped expenditure for the licence at the end of 30 June 2001; and
 (c) its effective life is the same as it had under the former Act; and
 (d) you must use the prime cost method.

Note: There are special rules for entities that have substituted accounting periods: see section 40‑65.

40‑33  Datacasting transmitter licences

 (1) This section applies to you if you hold a datacasting transmitter licence at 1 July 2001.

 (2) Division 40 of the new Act applies to the licence on this basis:
 (a) its cost is your expenditure incurred in obtaining the licence; and
 (b) its opening adjustable value at 1 July 2001 is its cost; and
 (c) its effective life is 15 years less any period that has elapsed from the day the licence was issued until 1 July 2001; and
 (d) you must use the prime cost method.

40‑35  Mining unrecouped expenditure

 (1) This section applies to you if you have an amount of unrecouped expenditure under Division 330 of the former Act at the end of 30 June 2001.

 (2) Division 40 of the new Act applies to the expenditure as if it were a depreciating asset (the notional asset) you hold on this basis:
 (a) it has an opening adjustable value at 1 July 2001 equal to the amount of unrecouped expenditure reduced by any deductions allowable under section 330‑80 of the former Act for your income year ending on 30 June 2001; and
 (b) it has a cost equal to the total amount of allowable capital expenditure under the former Act; and
 (c) in applying the formula in section 40‑75 of the new Act for the income year in which 1 July 2001 occurs—you use the adjustments in subsection 40‑75(3) of the new Act; and
 (d) it is taken to have been used for a taxable purpose at the start of 1 July 2001; and
 (e) it has a remaining effective life worked out under subsection (3); and
 (f) you must use the prime cost method.

Note: There are special rules for entities that have substituted accounting periods: see section 40‑65.

 (3) The remaining effective life of the notional asset at the start of an income year (present income year) for which you are working out its decline in value is:
 (a) for an amount of unrecouped expenditure in respect of expenditure incurred in carrying on eligible mining operations other than in the course of petroleum mining is the lesser of these:
 (i) the number equal to the difference between 10 and the number of income years (which may be zero) before the present income year for which an amount in respect of expenditure was deductible;
 (ii) the number equal to