Document ID: chunk:federal_register_of_legislation:C2024A00052:clause:2_1:p2
Version: federal_register_of_legislation:C2024A00052
Segment Type: clause
Provision Reference: sch 2 cl 1 (pt 2/4)
Character Range: 10691–13343

because you stop holding the asset because of an event or circumstance referred to in subsection 40‑365(2) (about involuntary disposals) of the Income Tax Assessment Act 1997.
 (2) This subsection applies to an asset if:
 (a) the asset uses electricity and one or more of the following apply:
 (i) a new reasonably comparable depreciating asset that uses a fossil fuel (other than a use of which that is merely incidental) is available in the market at the start time;
 (ii) if the asset is being acquired by way of replacement of or substitution for another depreciating asset—the asset is more energy efficient than the other asset;
 (iii) if the asset is not being acquired by way of replacement of or substitution for another depreciating asset—the asset is more energy efficient than a new reasonably comparable depreciating asset that is available in the market at the start time; or
 (b) the asset enables one or more of the following:
 (i) a depreciating asset (other than an asset excluded under subsection (6)) that uses electricity, or energy that is generated from a renewable source, to be more energy efficient;
 (ii) electricity, or energy that is generated from a renewable source, to be stored;
 (iii) electricity, or energy that is generated from a renewable source, to be used at a different time;
 (iv) the use of electricity, or energy that is generated from a renewable source, by another depreciating asset to be monitored.

Certain expenditure that is included in the second element of cost of a depreciating asset
 (3) This subsection applies to an amount of expenditure in relation to an income year if:
 (a) the amount is included in the second element of a depreciating asset's cost under paragraph 40‑190(2)(a) of the Income Tax Assessment Act 1997; and
 (b) you can deduct the expenditure under a provision of a taxation law (other than section 328‑465 of this Act) whether or not in, or wholly in, the income year in which the expenditure is incurred; and
 (c) the expenditure is incurred:
 (i) in the income year; and
 (ii) after 30 June 2023 but before 1 July 2024; and
 (d) you are a small business entity, or an entity covered by subsection (4), for the income year in which the expenditure is incurred; and
 (e) the expenditure enables one or more of the following:
 (i) if the asset could use a fossil fuel (other than a use of which that is merely incidental)—the asset to only use electricity, or energy that is generated from a renewable source;
 (ii) if the asset uses electricity, or energy that is generated from a renewable source—the asset to be more energy efficient;
 (iii) the asset to store electricity,