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-C - Cost  

Operative provisions

SECTION 40-195  

40-195   Apportionment of cost  

If you pay an amount for 2 or more things that include at least one ^* depreciating asset, or that include a contribution to bringing a depreciating asset to its present condition and location, you take into account as part of its ^* cost only that part of what you paid that is reasonably attributable to the asset.

Example:

Ian buys 3 assets (one depreciating asset and 2 other assets) under the one transaction. He pays $30,000 for the 3 assets. $25,000 of that amount is reasonably attributable to the depreciating asset.

The first element of the depreciating asset's cost is $25,000.