Document ID: chunk:federal_register_of_legislation:C2021C00270:clause:7_1:p2
Version: federal_register_of_legislation:C2021C00270
Segment Type: clause
Provision Reference: sch 7 cl 1 (pt 2/6)
Character Range: 104732–107297

asset is allocated to a software development pool (see Subdivision 40‑E of the Income Tax Assessment Act 1997); or
 (b) you or another taxpayer has deducted or can deduct amounts for the asset under Subdivision 40‑F of the Income Tax Assessment Act 1997 (about primary production depreciating assets).

40‑155  Businesses with turnover under $5 billion
  This section covers you for an income year if:
 (a) you are a small business entity for the income year; or
 (b) you would be a small business entity for the income year if:
 (i) each reference in Subdivision 328‑C of the Income Tax Assessment Act 1997 (about what is a small business entity) to $10 million were instead a reference to $5 billion; and
 (ii) the reference in paragraph 328‑110(5)(b) of that Act to a small business entity were instead a reference to an entity covered by this section.

40‑160  Full expensing of first and second element of cost for post‑2020 budget assets
 (1) For the purposes of Division 40 of the Income Tax Assessment Act 1997, the decline in value of a depreciating asset you hold for an income year (the current year) is the amount worked out under subsection (3) if:
 (a) you start to hold the asset at or after the 2020 budget time; and
 (b) you start to use the asset, or have it installed ready for use, for a taxable purpose in the current year; and
 (c) you are covered by section 40‑150 for the asset; and
 (d) you are covered by section 40‑155 (about businesses with turnover under $5 billion) for the current year; and
 (e) no balancing adjustment event happens to the asset in the current year.

Exclusions
 (2) However, this section does not apply if an exclusion applies to you and the asset for the current year under section 40‑165 (about exclusions for businesses with turnover of $50 million or more).

Amount of the decline in value
 (3) The decline in value for the current year is:
 (a) if the asset's start time occurs in the current year—the asset's cost as at the end of the current year, disregarding any amount included in the asset's cost after 30 June 2022; or
 (b) if the asset's start time occurred in an earlier year—the sum of its opening adjustable value for the current year and any amount included in the second element of its cost for the current year, disregarding any amount included in the asset's cost after 30 June 2022.
Note 1: The asset's start time is when you first use it, or have it installed ready for use, for any purpose (including a non‑taxable purpose): see subsection 40‑60(2) of the Income Tax Assessment Act 1997.
Note