Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-45 - RULES FOR PARTICULAR INDUSTRIES AND OCCUPATIONS  

Division 328 - Small business entities  

Subdivision 328-D - Capital allowances for small business entities  

Operative provisions

SECTION 328-180   Assets costing less than $1,000  

328-180(1)  


You deduct the *taxable purpose proportion of the *adjustable value of a *depreciating asset for the income year in which you start to use the asset, or have it *installed ready for use, for a *taxable purpose if:


(a) you were a *small business entity for that year and the year in which you started to *hold it; and


(ab) you chose to use this Subdivision for each of those years; and


(b) the asset is a depreciating asset whose *cost as at the end of the income year in which you start to use it, or have it installed ready for use, for a taxable purpose is less than $1,000.

Note:

This threshold may be $20,000, $25,000 or $30,000 for assets you first acquire between 12 May 2015 and 30 June 2020: see subsection 328-180(4) of the Income Tax (Transitional Provisions) Act 1997 .

328-180(2)  


You can also deduct, for an income year for which you are a *small business entity and you choose to use this Subdivision, the *taxable purpose proportion of an amount included in the second element of the *cost of an asset for which you have deducted an amount under subsection (1) if:


(a) the amount so included is less than $1,000; and

Note:

This threshold is $20,000, $25,000 or $30,000 for costs included between 12 May 2015 and 30 June 2020: see subsection 328-180(5) of the Income Tax (Transitional Provisions) Act 1997 .


(b) you started to use the asset, or have it *installed ready for use, for a *taxable purpose during an earlier income year.

328-180(3)  


An asset for which you have deducted an amount under this section is allocated to your *general small business pool if:


(a) an amount of $1,000 or more is included in the second element of the asset ' s *cost; or

Note:

This threshold is $20,000, $25,000 or $30,000 for costs included between 12 May 2015 and 30 June 2020: see subsection 328-180(5) of the Income Tax (Transitional Provisions) Act 1997 .


(b) any amount is included in the second element of the asset ' s cost and you have deducted or can deduct an amount under subsection (2) for an amount previously included in the second element of the asset ' s cost.

328-180(4)  


This Division applies to the asset as if its *adjustable value were the amount included in the second element of its *cost as mentioned in subsection (3).

328-180(5)  


Subsection (3) applies even if the amount is included in the second element of the asset ' s *cost during an income year for which you are not a *small business entity or do not choose to use this Subdivision.

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