Document ID: chunk:federal_register_of_legislation:C2004C00927:clause:1_9:p1
Version: federal_register_of_legislation:C2004C00927
Segment Type: clause
Provision Reference: sch 1 cl 9 (pt 1/3)
Character Range: 211185–214136

9  After Division 41
Insert:

Division 42—Depreciation of plant

Table of Subdivisions

 Guide to Division 42
42-A Key operative provisions
42-B Cost of plant
42-C Effective life
42-D Depreciation rates
42-E Calculation of depreciation deductions
42-F Calculation of balancing adjustments
42-G Calculation of balancing adjustments for some cars
42-H Balancing adjustment relief
42-I Quasi-ownership
42-J Partial change of ownership
42-K Car depreciation limit
42-L Pooling

Guide to Division 42

42-1  What this Division is about

      This Division sets out the basis on which you can deduct amounts for depreciation of property that is a unit of plant.
      To work out how this Division applies to existing plant (and some plant where roll-overs are involved), you need to refer to the transitional provisions in Division 42 of the Income Tax (Transitional Provisions) Act 1997.

Table of sections

42-5 Key concepts used in this Division

42-5  Key concepts used in this Division

Subdivision 42-A—Key operative provisions

Guide to Subdivision 42-A

42-10  What this Subdivision is about

      This Subdivision contains the key operative provisions for depreciation, including the main deduction provision.

Table of sections

Operative provisions

42-15 Deduction for depreciation
42-18 Meaning of plant
42-19 References to plant
42-20 Amount you deduct
42-25 Calculation
42-30 Balancing adjustments
42-35 Application of Division 41 Common rules
42-40 Choices
42-45 Exclusions
42-48 Debt forgiveness: amounts deducted for depreciation

Non-operative provisions

42-50 What are other "amounts deducted for depreciation"?
42-55 Signposting to other parts of the Act

Operative provisions

42-15  Deduction for depreciation

  You deduct an amount for depreciation of a unit of *plant for an income year if, in that year:
 (a) you are its owner or *quasi-owner; and
 (b) you use it, or have it *installed ready for use, for the *purpose of producing assessable income.

Note: If there is a quasi-owner, the owner cannot deduct: see
section 42‑320.

42-18  Meaning of plant

 (1) Plant includes:
 (a) articles, machinery, tools and rolling stock; and
 (b) animals used as beasts of burden or working beasts in a *business, other than a *primary production business; and
 (c) fences, dams and other structural improvements, other than those used for domestic or residential purposes, on land that is used for agricultural or pastoral operations; and
 (d) structural improvements, other than a *forestry road or structural improvements used for domestic or residential purposes, on land used in a business involving:
 (i) planting or tending trees in a plantation or forest that are intended to be felled; or
 (ii) felling trees in a plantation or forest; or
 (iii) transporting trees, or parts of trees, that you felled in a plantation or forest to the place where they are first to be milled or processed, or from which they are to be