Document ID: chunk:federal_register_of_legislation:C2021C00270:clause:7_1:p1
Version: federal_register_of_legislation:C2021C00270
Segment Type: clause
Provision Reference: sch 7 cl 1 (pt 1/6)
Character Range: 102308–104965

1  After Subdivision 40‑BA
Insert:

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
40‑160 Full expensing of first and second element of cost for post‑2020 budget assets
40‑165 Exclusions for post‑2020 budget assets applicable to businesses with turnover of $50 million or more
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

40‑140  Definitions
  In this Subdivision:
2020 budget time means 7.30 pm, by legal time in the Australian Capital Territory, on 6 October 2020.

40‑145  Interaction with other provisions
  If this Subdivision applies to work out the decline in value of a depreciating asset you hold for an income year, no other provision of this Act or the Income Tax Assessment Act 1997 applies to work out that decline in value.

40‑150  When an asset of yours qualifies for full expensing
 (1) For the purposes of this Subdivision, you are covered by this section for a depreciating asset if, on or before 30 June 2022:
 (a) you start to hold the asset; and
 (b) you start to use the asset, or have it installed ready for use, for a taxable purpose.

Exception—assets to which Division 40 does not apply
 (2) Despite subsection (1), you are not covered by this section for the asset if Division 40 of the Income Tax Assessment Act 1997 does not apply to the asset because of section 40‑45 of that Act.

Exception—assets not used or located in Australia
 (3) Despite subsection (1), you are not covered by this section for the asset if, at the time you first use the asset, or have it installed ready for use, for a taxable purpose:
 (a) it is not reasonable to conclude that you will use the asset principally in Australia for the principal purpose of carrying on a business; or
 (b) it is reasonable to conclude that the asset will never be located in Australia.

Exception—assets for which the decline in value is worked out under Subdivision 40‑E or 40‑F of the Income Tax Assessment Act 1997
 (4) Despite subsection (1), you are not covered by this section for the asset if:
 (a) the asset is allocated to a low‑value pool, or expenditure on the asset is allocated to a software development pool (see Subdivision 40‑E of the Income Tax Assessment Act 1997); or
 (b) you or another taxpayer has deducted or can deduct amounts for the asset under Subdivision 40‑F of the Income Tax