Document ID: chunk:federal_register_of_legislation:C2021C00270:clause:5_42
Version: federal_register_of_legislation:C2021C00270
Segment Type: clause
Provision Reference: sch 5 cl 42
Character Range: 88836–89741

42  After subsection 40‑292(3)
Insert:

Application of Division 355
 (3A) In applying Division 355 of the new Act in relation to the asset for the income year, the R&D entity is taken to have:
 (a) if the section 40‑285 amount is an amount included in the R&D entity's assessable income—a clawback amount under section 355‑447 of the new Act for the income year; or
 (b) if the section 40‑285 amount is a deduction—a catch up amount under section 355‑466 of the new Act for the income year;
equal to the following amount:
where:
adjusted section 40‑285 amount means:
 (a) if the section 40‑285 amount is a deduction—the amount of the deduction; or
 (b) if the section 40‑285 amount is an amount included in the R&D entity's assessable income—so much of the section 40‑285 amount as does not exceed the total decline in value.
total decline in value means the cost of the asset less its adjustable value.