Document ID: chunk:federal_register_of_legislation:C2004C00927:clause:6_2:p3
Version: federal_register_of_legislation:C2004C00927
Segment Type: clause
Provision Reference: sch 6 cl 2 (pt 3/10)
Character Range: 586996–589636

for depreciation of it under the 1936 Act.

 (4) However, if you are using the diminishing value method for the plant and section 58 of the 1936 Act applied to your acquisition of the plant, the cost is:
 (a) the cost used by the transferor; or
 (b) if there were earlier successive transferors—the cost used by the earliest successive transferor.

Rate

 (5) You use the rate worked out under subsections 42-6(5), (6) and (7).

42-8  Rules where Common rule 1 applies

Effective life

 (1) Subdivision 42-C of the 1997 Act does not apply to plant if:
 (a) Common rule 1 in Subdivision 41-A of the 1997 Act applied to your acquisition of it; and
 (b) the transferor, or an earlier successive transferor, acquired or constructed it before 13 March 1991.

Rate

 (2) If:
 (a) Common rule 1 applied to your acquisition of plant; and
 (b) the rate for the transferor, or an earlier successive transferor, was an annual depreciation percentage worked out under the old depreciation provisions;
you use the rate worked out under subsections 42‑6(5), (6) and (7).

 (3) In working out that rate, you are taken to have acquired or constructed the plant at the time when:
 (a) the transferor; or
 (b) if there were earlier successive transferors—the earliest successive transferor;
acquired or constructed it for the purposes of the old depreciation provisions.

42-9  Amounts deducted under old law taken to be amounts deducted under new law

 (1) This section applies to the various references in Division 42 of the 1997 Act to an amount you have deducted or can deduct for depreciation of plant. However, it does not apply for the purpose of working out the undeducted cost of the plant (see section 42‑175 of this Act).

 (2) Those references are taken to include:
 (a) amounts you have deducted or can deduct for depreciation of the plant under the old depreciation provisions, other than an amount that is taken by subsection 59(2E) of the 1936 Act to be depreciation allowed for the plant because of paragraph 59(2A)(a) or (b) or subsection 59(2D) of that Act; and
 (b) amounts you have deducted or can deduct for depreciation of the plant using the "log book" method or the "one-third of actual expenses" method under section 82KUD or 82KW, or Schedule 2A, of the 1936 Act; and
 (c) if section 58 of the 1936 Act, or Common rule 1, applied to your acquisition of the plant—the sum of the amounts that would apply under paragraph (a) or (b) to the transferor and earlier successive transferors.

 (3) Also, the references in sections 42-30, 42-190 and 42-240 of the 1997 Act to amounts you have deducted or can deduct for depreciation of