Document ID: chunk:federal_register_of_legislation:C2024C00267:section:3:p36
Version: federal_register_of_legislation:C2024C00267
Segment Type: section
Provision Reference: s 3 (pt 36/50)
Character Range: 166280–168781

element of its cost for the current year, disregarding any amount included in the asset's cost after 30 June 2023.
Note 1: The asset's start time is when you first use it, or have it installed ready for use, for any purpose (including a non‑taxable purpose): see subsection 40‑60(2) of the Income Tax Assessment Act 1997.
Note 2: A case covered by paragraph (b) is where you start to hold the asset in the period 6 October 2020 to 30 June 2021 and use it for only non‑taxable purposes in that period, then first use it for a taxable purpose in the period 1 July 2021 to 30 June 2022.

40‑165  Exclusions—entities covered by section 40‑155 or 40‑157
 (1) For the purposes of subsection 40‑160(2), an exclusion applies to you and an asset for an income year if:
 (a) where paragraph 40‑160(2)(a) applies—section 40‑155 would not cover you for the income year if the reference in that section to $5 billion were instead a reference to $50 million; and
 (b) any of the exclusions in this section applies in relation to the asset.

Exclusion—commitments already entered into
 (2) This exclusion applies in relation to the asset if, before the 2020 budget time, you:
 (a) entered into a contract under which you would hold the asset; or
 (b) started to construct the asset; or
 (c) started to hold the asset in some other way.
 (3) This exclusion applies in relation to the asset (the post‑6 October 2020 asset) if:
 (a) on a day before 6 October 2020, you:
 (i) enter into a contract under which you hold an asset on that day, or will hold the asset on a later day; or
 (ii) start to construct an asset; or
 (iii) start to hold an asset in some other way; and
 (b) on a day on or after 6 October 2020 (the conduct day), you engage in conduct that results in you:
 (i) entering into a contract under which you hold the post‑6 October 2020 asset on the conduct day, or will hold that asset on an even later day; or
 (ii) starting to construct the post‑6 October 2020 asset; or
 (iii) starting to hold the post‑6 October 2020 asset in some other way; and
 (c) the post‑6 October 2020 asset is the asset mentioned in paragraph (a), or an identical or substantially similar asset; and
 (d) you engage in that conduct for the purpose, or for purposes that include the purpose, of satisfying paragraph 40‑160(1)(a) for the post‑6 October 2020 asset.
 (4) For the purposes of subsections (2) and (3), treat yourself as having started to construct an asset at a time if you first incur expenditure in respect of the