Income Tax Assessment Act 1997

CHAPTER 2 - LIABILITY RULES OF GENERAL APPLICATION  

PART 2-10 - CAPITAL ALLOWANCES: RULES ABOUT DEDUCTIBILITY OF CAPITAL EXPENDITURE  

Division 40 - Capital allowances  

Subdivision 40-B - Core provisions  

Operative provisions

SECTION 40-82   Assets costing less than $30,000 - medium sized businesses - income years ending between 2 April 2019 and 30 June 2020  

Year in which asset first used, or installed ready for use, for a taxable purpose

40-82(1)  
The decline in value of a *depreciating asset you *hold for the income year (the current year ) in which you start to use the asset, or have it *installed ready for use, for a *taxable purpose is the amount worked out under subsection (2) if:


(a) you are an entity covered by subsection (4) (about medium sized businesses) for the current year and for the income year in which you started to hold the asset; and


(b) you first acquired the asset in the period beginning at 7.30 pm, by legal time in the Australian Capital Territory, on 2 April 2019 and ending on 30 June 2020; and


(c) the current year ends:


(i) on or after 2 April 2019; and

(ii) on or before 30 June 2020; and


(d) the asset is a depreciating asset whose *cost as at the end of the current year is less than $30,000.

Note:

The amount you can deduct may be reduced by other provisions, such as subsection 40-25(2) (about taxable purpose) and section 40-215 (about double deductions).

40-82(2)  
The amount is:


(a) unless paragraph (b) applies - the asset ' s *cost as at the end of the current year; or


(b) if the asset ' s *start time occurred in an earlier income year - the sum of the asset ' s *opening adjustable value for the current year and any amount included in the second element of its cost for the current year. Later year

40-82(3)  
The decline in value of a *depreciating asset you *hold for an income year (the later year ) is the first amount included in the second element of the asset ' s *cost for the later year if:


(a) you are an entity covered by subsection (4) (about medium sized businesses) for the later year; and


(b) the amount so included is less than $30,000; and


(c) you worked out the decline in value of the asset for an earlier income year under subsection (1); and


(d) the later year ends:


(i) on or after 2 April 2019; and

(ii) on or before 30 June 2020.
Note:

The amount you can deduct may be reduced by other provisions, such as subsection 40-25(2) (about taxable purpose) and section 40-215 (about double deductions).

Medium sized business

40-82(4)  
An entity is covered by this subsection for an income year if:


(a) the entity is not a *small business entity for the income year; and


(b) the entity would be a small business entity for the income year if:


(i) each reference in Subdivision 328-C (about what is a small business entity) to $10 million were instead a reference to $50 million; and

(ii) the reference in paragraph 328-110(5)(b) to a small business entity were instead a reference to an entity covered by this subsection.
Years ending after 30 June 2020

40-82(5)  
For an income year ending after 30 June 2020, the asset ' s decline in value is worked out under the other provisions of this Division.


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