Document ID: chunk:federal_register_of_legislation:C2021C00270:clause:7_1:p5
Version: federal_register_of_legislation:C2021C00270
Segment Type: clause
Provision Reference: sch 7 cl 1 (pt 5/6)
Character Range: 111676–114327

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 by section 40‑155 (about businesses with turnover under $5 billion) for the current year; 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.

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 amount for the current year is the sum of:
 (a) the amount that would be the asset's decline in value for the year under section 40‑82 of the Income Tax Assessment Act 1997, assuming the reference in subparagraph 40‑82(3A)(b)(ii) of that Act to 31 December 2020 were instead a reference to the 2020 budget time; and
 (b) the eligible second element worked out under section 40‑175 of this Act for the asset for the year.

Assets affected by Subdivision 40‑BA (backing business investment)
 (4) If this subsection applies, the amount for the current year is the sum of:
 (a) the amount that would be worked out under paragraph 40‑130(2)(a) or (4)(a) (whichever is applicable) for the year, assuming the references in paragraphs 40‑130(2)(a) and (4)(a) to 30 June 2021 were instead references to the 2020 budget time; and
 (b) the eligible second element worked out under section 40‑175 for the asset for the year; and
 (c) the amount that would be worked out under paragraph 40‑130(2)(b) or (4)(b) (whichever is applicable) for the year, assuming the references in paragraphs 40‑130(2)(b) and (4)(b) to "the amount worked out under paragraph (a)" were instead references to "the amounts worked out under paragraphs 40‑170(4)(a) and (b)".

Other assets
 (5) If this subsection applies, the amount for the current year is the sum of:
 (a) the amount that would be the asset's decline in value