Document ID: chunk:federal_register_of_legislation:C2024C00267:section:3:p17
Version: federal_register_of_legislation:C2024C00267
Segment Type: section
Provision Reference: s 3 (pt 17/50)
Character Range: 122301–124830

method.
Note: There are special rules for entities that have substituted accounting periods: see section 40‑65.

40‑47  IRUs
 (1) Division 40 of the new Act does not apply to an IRU to the extent to which expenditure on the IRU was incurred at or before 11.45 am, by legal time in the Australian Capital Territory, on 21 September 1999 (the IRU time).
 (2) Division 40 of the new Act does not apply to an IRU over an international telecommunications submarine cable system if the system had been used for telecommunications purposes at or before the IRU time.

40‑50  Forestry roads and timber mill buildings
 (1) This section applies to you if:
 (a) you have deducted or can deduct an amount under Subdivision 387‑G of the former Act for an amount (the qualifying amount) of expenditure on a forestry road or timber mill building or could have deducted an amount under that Subdivision if you had used the road or building for the purpose of producing assessable income; and
 (b) you hold the road or building at the end of 30 June 2001.
 (2) Division 40 of the new Act applies to the asset on this basis:
 (a) it has an opening adjustable value at 1 July 2001 equal to the qualifying amount less any amounts you have deducted or can deduct for it under the former Act; and
 (b) in applying the formula in section 40‑75 of the new Act for your income year in which 1 July 2001 occurs—you use the adjustments in subsection 40‑75(3) of the new Act; and
 (c) its cost is the qualifying amount; and
 (d) it has an effective life equal to the remaining life you last estimated for it under the former Act; and
 (e) you can recalculate its effective life if you conclude that your estimate is no longer accurate (except that the effective life cannot exceed 25 years); and
 (f) you must use the prime cost method.
Note: There are special rules for entities that have substituted accounting periods: see section 40‑65.

40‑55  Environmental impact assessment
 (1) This section applies to you if you have deducted or can deduct an amount under Subdivision 400‑A of the former Act for an amount (the qualifying amount) of expenditure on or before 30 June 2001 on evaluating the impact on the environment of a project under Subdivision 400‑A of the former Act.
 (2) Division 40 of the new Act applies to the qualifying amount as if it were a depreciating asset on this basis:
 (a) it has an opening adjustable value at 1 July 2001 equal to the qualifying amount less any amounts you have deducted or can deduct for it under the former Act