Document ID: chunk:federal_register_of_legislation:C2004C00958:clause:1_7:p2
Version: federal_register_of_legislation:C2004C00958
Segment Type: clause
Provision Reference: sch 1 cl 7 (pt 2/3)
Character Range: 600898–603521

subsection 373‑30(2).

Note 2: Your expenditure does not include expenditure covered by Subdivision 373‑A (expenditure incurred in registering the item).

 (2) However, you cannot deduct an amount under this section if:

 (a) during the *current year or an earlier income year, you disposed of the item, or some other *balancing adjustment event happened at a time when you owned the item; or

 (b) another entity acquired the item from you during an earlier income year because of a transmission by operation of law.

Note 1: If during the current year you disposed of the item or some other balancing adjustment event happened, you may be able to deduct an amount because of the balancing adjustment that you must make: see Subdivision 373‑D.

Note 2: You can deduct an amount under this section even if you have disposed of part of the item. The effect of partial realisations is set out in Subdivision 373‑C.

Note 3: Once you have a deduction under this section, an amount may be included in your assessable income under Subdivision 373‑C or 373‑D.

 (3) You also cannot deduct an amount under this section if the item relates to a copyright in an Australian film within the meaning of Division 10B of Part III of the Income Tax Assessment Act 1936.

Note: In that case you may be able to deduct amounts under that Division.

373‑15  Meaning of item of intellectual property

 (1) An item of intellectual property consists of the rights (including equitable rights) that an entity holds under a *Commonwealth law as:

 (a) the patentee, or a licensee, of a patent; or

 (b) the owner, or a licensee, of a registered design; or

 (c) the owner, or a licensee, of a copyright;

or of equivalent rights held under a *foreign law.

Extension of licence treated as grant of new licence

 (2) This Division applies as if an extension of the term of a licence relating to a patent, design or copyright were the grant of a new licence.

373‑20  How much you can deduct

 (1) The amount you can deduct for the *current year is:

 • your *unrecouped expenditure on the item at the end of the current year;

divided by:

 • the number of income years from the start of the current year to the end of the item's *effective life.

Disposal of the item by transmission by operation of law

 (2) But if another entity has acquired the item from you during the *current year because of a transmission by operation of law, the amount you can deduct for the current year is:

 • your *unrecouped expenditure on the item immediately before the transmission;

divided by:

 • the number of income years from