Taxation Laws Amendment Act (No. 5) 2002 (119 of 2002)

Schedule 3   Capital allowances

Income Tax Assessment Act 1997

74   Subsection 328-180(2)

Repeal the subsection, substitute:

(2) You can also deduct for an income year for which you are an *STS taxpayer the *taxable purpose proportion of an amount included in the second element of the *cost of a *low-cost asset for which you have deducted an amount under subsection (1) if:

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

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

(3) A *low-cost asset for which you have deducted an amount under this section is allocated to your *general STS pool if:

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

(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.

(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).

(5) Subsection (3) applies even if the amount is included in the second element of the asset's *cost when you are not an *STS taxpayer.