DEVELOPMENT ALLOWANCE AUTHORITY ACT 1980 (ARCHIVE)

CHAPTER 2 - DEVELOPMENT ALLOWANCE  

PART 2 - KEY CONCEPTS RELATING TO PROJECTS  

Division 11 - Plant expenditure incurred in respect of the lease of new units of plant  

SECTION 25A (ARCHIVE)   PLANT EXPENDITURE INCURRED IN RESPECT OF THE LEASE OF NEW UNITS OF PLANT  

25A(1)   Section applies to lease expenditure.  

This section applies if an entity incurs, or proposes to incur, plant expenditure in respect of the lease of a new unit of plant under a long-term lease agreement where the lessor is a leasing company.

25A(2)   When expenditure incurred in carrying out a project.  

For the purposes of this Chapter, in testing whether the expenditure is incurred, or proposed to be incurred, in carrying out a project, it is to be assumed that the entity had incurred, or proposed to incur, the expenditure in respect of the acquisition of the unit of plant instead of in respect of the lease of the unit of plant.

25A(3)   Periodic lease payments deemed to be incurred when earliest payment incurred.  

For the purposes of this Chapter, if, apart from this subsection, the expenditure is incurred on a periodic basis, all of the expenditure is taken to have been incurred at the earliest time at which any of the expenditure was incurred.