Document ID: chunk:federal_register_of_legislation:C2024C00267:section:3:p38
Version: federal_register_of_legislation:C2024C00267
Segment Type: section
Provision Reference: s 3 (pt 38/50)
Character Range: 170958–173565

asset if the asset is an intangible asset.

Exclusion—assets previously held by associates
 (3) This exclusion applies in relation to the asset if it had been previously held by an associate of yours.

Exclusion—assets available for use by associates or foreign residents
 (4) This exclusion applies in relation to the asset if the asset is available for use, at any time in the income year, by any of the following:
 (a) an associate of yours;
 (b) an entity that is a foreign resident.

40‑170  Full expensing of eligible second element of cost
 (1) For the purposes of Division 40 of the Income Tax Assessment Act 1997, the decline in value of a depreciating asset you hold for an income year (the current year) is the amount worked out under this section if:
 (a) either:
 (i) you start to use the asset, or have it installed ready for use, for a taxable purpose in the current year; or
 (ii) you started to use the asset, or have it installed ready for use, for a taxable purpose in an earlier income year; and
 (b) you are covered by section 40‑150 for the asset; and
 (c) you are covered for the current year by any of the following:
 (i) section 40‑155 (about businesses with turnover under $5 billion);
 (ii) section 40‑157 (about corporate tax entities with income under $5 billion); and
 (d) the eligible second element worked out under section 40‑175 for the asset for the year is greater than nil; and
 (e) no balancing adjustment event happens to the asset in the current year; and
 (f) you have not made a choice under section 40‑190 in relation to the current year.

Exclusions
 (1A) However, this section does not apply if:
 (a) section 40‑157 covers you for the current year (but section 40‑155 does not); and
 (b) an exclusion applies to you and the asset for the current year under section 40‑167 (about exclusions for corporate tax entities with income under $5 billion).

Amount of the decline in value
 (2) The decline in value of the asset for the current year is:
 (a) if the asset's decline in value for the year would, apart from section 40‑145, be worked out under section 40‑82 of the Income Tax Assessment Act 1997—the amount worked out under subsection (3); or
 (b) if the asset's decline in value for the year would, apart from section 40‑145, be worked out under Subdivision 40‑BA of this Act—the amount worked out under subsection (4); or
 (c) otherwise—the amount worked out under subsection (5).

Assets affected by section 40‑82 of the Income Tax Assessment Act 1997 (about assets costing less than $150,000, medium sized businesses)
 (3) If this subsection applies, the