Income Tax Assessment Act 1997
SECTION 40-72 Diminishing value method for post-9 May 2006 assets 40-72(1)
You work out the decline in value of a *depreciating asset for an income year using the diminishing value method in this way if you started to *hold the asset on or after 10 May 2006:
*Base value | × | Days held | × | 200% | ||
365 | Asset ' s *effective life |
where:
days held
has the same meaning as in subsection
40-70(1)
.
Note:
If you recalculate the effective life of a depreciating asset, you use that recalculated life in working out your deduction.
You can choose to recalculate effective life because of changed circumstances: see section 40-110 . That section also requires you to recalculate effective life in some cases.
Exception: intangibles
40-72(2)
You cannot use the *diminishing value method to work out the decline in value of: (a) *in-house software; or (b) an item of *intellectual property (except copyright in a *film); or (c) a *spectrum licence; or
(d) (Repealed by No 151 of 2020) (e) a *telecommunications site access right.
Limit on decline
40-72(3)
The decline in value of a *depreciating asset under this section for an income year cannot be more than the amount that is the asset ' s *base value for that income year.
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