Document ID: chunk:federal_register_of_legislation:C2025C00029:section:3:p11
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 3 (pt 11/54)
Character Range: 1113699–1116394

asset mentioned in paragraph (a) (or an identical or substantially similar asset) at that later time, or will hold that asset (or an identical or substantially similar asset) at an even later time; or
 (ii) starting to construct an asset that is identical or substantially similar to the asset mentioned in paragraph (a); or
 (iii) starting to hold the asset mentioned in paragraph (a) (or an identical or substantially similar asset) in some other way; and
 (c) you engage in that conduct for the purpose, or for purposes that include the purpose, of becoming entitled to a deduction under this Division.
 (3) Despite paragraph (1)(a), the investment commitment time for an amount to which that paragraph would otherwise apply is the time mentioned in paragraph (2)(a).
 (3A) For the purposes of paragraph (1)(a) and subsection (2), treat yourself as having started to construct an asset at a time if you first incur expenditure in respect of the construction of the asset at that time.
 (3B) For the purposes of paragraph (1)(b), treat yourself as having started construction for an economic benefit at a time if you first incur expenditure in respect of the construction for the benefit at that time.

Options
 (4) To avoid doubt, for the purposes of this section, you do not enter into a contract under which you *hold an asset merely because you acquire an option to enter into such a contract.

41‑30  First use time
  The first use time for the amount is:
 (a) if the amount is included in the first element of the asset's *cost—the time at which you start to use the asset, or have it *installed ready for use; or
 (b) if the amount is included in the second element of the asset's cost—the later of:
 (i) the time at which it becomes included in that element under paragraph 40‑190(2)(a); or
 (ii) the time mentioned in paragraph (a).

41‑35  New investment threshold
  The new investment threshold for an income year (the relevant income year) in relation to an asset means:
 (a) $1000 if you are a *small business entity during any of the following income years:
 (i) the income year in which occurs the *investment commitment time for any *recognised new investment amount for the asset in relation to the relevant income year;
 (ii) the income year in which occurs the *first use time for any such amount;
 (iii) the relevant income year; or
 (b) otherwise—$10,000.

Division 43—Deductions for capital works

Table of Subdivisions
 Guide to Division 43
43‑A Key operative provisions
43‑B Establishing the deduction base
43‑C Your area and your construction expenditure
43‑D Deductible uses of capital works
43‑E Special rules about uses
43‑F Calculation of deduction
43‑G Undeducted