Document ID: chunk:federal_register_of_legislation:C2024C00267:section:3:p27
Version: federal_register_of_legislation:C2024C00267
Segment Type: section
Provision Reference: s 3 (pt 27/50)
Character Range: 145141–147783

This section applies to you if:
 (a) you incur expenditure after 30 June 2001 that forms part of the cost of a depreciating asset; and
 (b) the depreciating asset is one that you:
 (i) started to hold under a contract entered into before 1 July 2001; or
 (ii) constructed where the construction started before that day; or
 (iii) started to hold in some other way before that day; and
 (c) if you had incurred the expenditure before 1 July 2001, and had satisfied any relevant requirement for deductibility, you would have been able to deduct an amount for it under Division 44, 373 or 380, or Subdivision 46‑B or 387‑G, of the former Act.
 (2) Subdivision 40‑B of the new Act applies to the asset on the basis that it has a cost, and an adjustable value, of zero at the start of 1 July 2001.

40‑100  Commissioner's determination of effective life
  A determination by the Commissioner of the effective life of an asset that was made under section 42‑110 of the former Act and that was in force at the end of 30 June 2001 has effect as if it had been made under section 40‑100 of the new Act.

40‑105  Calculations of effective life
 (1) This section applies to the following (the instrument):
 (a) a determination under section 40‑100 of the Income Tax Assessment Act 1997 of the effective life of an asset;
 (b) a calculation under section 40‑105 of that Act of the effective life of an asset;
if the instrument was in force immediately before the commencement of Schedule 1 to the Tax Laws Amendment (Research and Development) Act 2011.
 (2) The instrument has effect, after that commencement, as if it had been made under that section as amended by the Tax Laws Amendment (Research and Development) Act 2011.

Subdivision 40‑BA—Backing business investment

Table of sections
40‑120 Backing business investment—accelerated decline in value for businesses with turnover less than $500 million
40‑125 Backing business investment—when an asset of yours qualifies
40‑130 Method for working out accelerated decline in value
40‑135 Division 40 of the Income Tax Assessment Act 1997 applies to later years
40‑137 Choice to not apply this Subdivision to an asset

40‑120  Backing business investment—accelerated decline in value for businesses with turnover less than $500 million
 (1) For the purposes of Division 40 of the Income Tax Assessment Act 1997, the decline in value of a depreciating asset for an income year is the amount worked out under section 40‑130 if:
 (a) the income year is the year in which you start to use the asset, or have it installed ready for use, for a taxable purpose; and
 (b) subsection (2) (about businesses with