Document ID: chunk:federal_register_of_legislation:C2025C00029:section:12:p8
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 12 (pt 8/34)
Character Range: 5096601–5099340

Taxable use

Operative provisions

328‑175  Calculations for depreciating assets
 (1) You can choose to calculate your deductions and some amounts of assessable income under this Subdivision instead of under Division 40 for an income year for all the *depreciating assets that you *hold if:
 (a) you are a *small business entity for the income year; and
 (b) you started to use the assets or have them *installed ready for use, for a *taxable purpose during or before that income year.
This subsection has effect subject to subsections (2) to (10).
Note: If you choose to use this Subdivision for an income year, you continue to use this Subdivision for your general small business pool for a later income year even if you are not a small business entity, or do not choose to use this Subdivision, for the later year: see section 328‑220.

Exception: assets to which Division 40 does not apply
 (2) This Subdivision does not apply to a *depreciating asset to which Division 40 does not apply because of section 40‑45.

Exception: primary production
 (3) If you are a *small business entity for the income year, for each *depreciating asset you use to carry on a *primary production business and for which you could deduct amounts under Subdivision 40‑F (about primary production depreciating assets) or Subdivision 40‑G (about capital expenditure of primary producers and other landholders) apart from subsection (1), you can choose:
 (a) to deduct amounts for it under Subdivision 40‑F or 40‑G; or
 (b) to calculate your deductions for it under this Subdivision.
Note: A choice made by a transferor under this subsection for an asset applies also to the transferee if roll‑over relief under subsection 40‑340(1) or (3) is chosen: see section 328‑245.
 (4) You must make the choice under subsection (3) for each *depreciating asset of the kind referred to in that subsection for the later of:
 (a) the first income year for which you are, or last were, a *small business entity; or
 (b) the income year in which you started to use the asset, or have it *installed ready for use, for a *taxable purpose.
Once you have made the choice for an asset, you cannot change it.

Exception: horticultural plants
 (5) You cannot deduct amounts for *horticultural plants (including grapevines) under this Subdivision.

Exception: asset let on depreciating asset lease
 (6) You cannot deduct amounts for a *depreciating asset under this Subdivision if the asset is being or might reasonably be expected to be let predominantly on a *depreciating asset lease.

Exception: assets in a low‑value or software development pool
 (7) You cannot deduct amounts for a *depreciating asset under this Subdivision if:
 (a) the asset was allocated to your low‑value