Document ID: chunk:federal_register_of_legislation:C2024C00267:section:3:p32
Version: federal_register_of_legislation:C2024C00267
Segment Type: section
Provision Reference: s 3 (pt 32/50)
Character Range: 156835–159510

for the diminishing value method—the asset's base value for the year; or
 (b) for the prime cost method—the sum of its opening adjustable value for the income year and any amount included in the second element of its cost for that year.

40‑135  Division 40 of the Income Tax Assessment Act 1997 applies to later years
 (1) The decline in value of a depreciating asset is not worked out under this Subdivision for an income year if this Subdivision already applied in working out the decline in value of the asset for an income year.
 (2) For an income year later than the 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 Income Tax Assessment Act 1997.

Adjustment required for prime cost method
 (3) If you use the prime cost method for the asset, you must adjust the formula in subsection 40‑75(1) of the Income Tax Assessment Act 1997 for the later year in the manner set out in subsection 40‑75(3) of that Act. The later year is the change year referred to in that subsection.

Balancing adjustment provisions
 (4) Subdivision 40‑D of the Income Tax Assessment Act 1997 has effect as if the decline in value worked out under this Subdivision had been worked out under Subdivision 40‑B of that Act.

40‑137  Choice to not apply this Subdivision to an asset
 (1) You may choose that the decline in value of a particular depreciating asset for an income year, and subsequent income years, is not to be worked out under this Subdivision.
 (2) The choice must be in the approved form.
 (3) The choice cannot be revoked.
 (4) You must give the choice to the Commissioner by the day you lodge your income tax return for the first income year to which the choice relates.
Note: The Commissioner may defer the time for giving the choice: see section 388‑55 in Schedule 1 to the Taxation Administration Act 1953.

Subdivision 40‑BB—Temporary full expensing of depreciating assets

Table of sections
40‑140 Definitions
40‑145 Interaction with other provisions
40‑150 When an asset of yours qualifies for full expensing
40‑155 Businesses with turnover under $5 billion
40‑157 Corporate tax entities with income under $5 billion
40‑160 Full expensing of first and second element of cost for post‑2020 budget assets
40‑165 Exclusions—entities covered by section 40‑155 or 40‑157
40‑167 Exclusions—entities covered by section 40‑157
40‑170 Full expensing of eligible second element of cost
40‑175 When is an amount included in the eligible second element
40‑180 Division 40 of the Income Tax Assessment Act 1997 applies to later years
40‑185 Balancing adjustment for assets not