Income Tax (Transitional Provisions) Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-45 - RULES FOR PARTICULAR INDUSTRIES AND OCCUPATIONS  

Division 328 - Small business entities  

SECTION 328-180   Increased access to accelerated depreciation from 12 May 2015 to 30 June 2025  

328-180(1)    

In this section:

2015 budget time
means 7.30 pm, by legal time in the Australian Capital Territory, on 12 May 2015.

2019 application time
means the start of 29 January 2019.

2019 budget time
means 7.30 pm, by legal time in the Australian Capital Territory, on 2 April 2019.

2020 announcement time
means the start of 12 March 2020.

2020 budget time
means 7.30 pm, by legal time in the Australian Capital Territory, on 6 October 2020.

increased access year
: an income year is an increased access year if any day in the year occurs:

(a) on or after 12 May 2015; and

(b) on or before 30 June 2025.

Restrictions on making choice

328-180(2)    
In determining whether you can choose to use Subdivision 328-D of the Income Tax Assessment Act 1997 in an increased access year, disregard subsection 328-175(10) of that Act.

328-180(3)    
In applying paragraph 328-175(10)(b) of that Act for the purpose of determining whether you can choose to use that Subdivision in any income year after the increased access years, disregard:

(a)    the increased access years, other than the last of the increased access years; and

(b)    all earlier income years.

Temporary increase to asset cost threshold

328-180(4)    

Paragraph 328-180(1)(b) of the Income Tax Assessment Act 1997 applies to a depreciating asset as if a reference in that paragraph to $ 1,000:

(a)    were a reference to $ 20,000, if you first acquired the asset at or after the 2015 budget time, and you:

(i) first used the asset, for a taxable purpose, at or after the 2015 budget time and before the 2019 application time; or

(ii) first installed the asset ready for use, for a taxable purpose, at or after the 2015 budget time and before the 2019 application time; or

(b)    

were a reference to $ 25,000, if you first acquired the asset at or after the 2015 budget time, and you:

(i) first used the asset, for a taxable purpose, at or after the 2019 application time and before the 2019 budget time; or

(ii) first installed the asset ready for use, for a taxable purpose, at or after the 2019 application time and before the 2019 budget time; or

(c)    

were a reference to $ 30,000, if you first acquired the asset at or after the 2015 budget time, and you:

(i) first used the asset, for a taxable purpose, at or after the 2019 budget time and before the 2020 announcement time; or

(ii) first installed the asset ready for use, for a taxable purpose, at or after the 2019 budget time and before the 2020 announcement time; or

(d) were a reference to $ 20,000, if you first acquired the asset at or after the 2015 budget time, and you:

(i) first used the asset, for a taxable purpose, on or after 1 July 2023 and on or before 30 June 2025; or

(ii) first installed the asset ready for use, for a taxable purpose, on or after 1 July 2023 and on or before 30 June 2025.

328-180(4A)    
Paragraph 328-180(1)(b) of the Income Tax Assessment Act 1997 applies to a depreciating asset as if:

(a)    

a reference in that paragraph to the end of the income year in which you start to use the asset, or have it installed ready for use, for a taxable purpose were a reference the earlier of:

(i) the end of that year; and

(ii) 30 June 2021; and

(b)    a reference in that paragraph to $ 1,000 were a reference to $ 150,000;

if:

(c)    you first acquired the asset at or after the 2015 budget time; and

(d)    

you:

(i) first used the asset, for a taxable purpose, at or after the 2020 announcement time and on or before 30 June 2021; or

(ii) first installed the asset ready for use, for a taxable purpose, at or after the 2020 announcement time and on or before 30 June 2021.

328-180(5)    

Paragraph 328-180(2)(a) or (3)(a) of the Income Tax Assessment Act 1997 applies to an amount included in the second element of the cost of an asset as if a reference in that paragraph to $ 1,000:

(a)    were a reference to $ 20,000, if the amount is so included at any time:

(i) at or after the 2015 budget time; and

(ii) before the 2019 application time; or

(b)    

were a reference to $ 25,000, if the amount is so included at any time:

(i) at or after the 2019 application time; and

(ii) before the 2019 budget time; or

(c)    

were a reference to $ 30,000, if the amount is so included at any time:

(i) at or after the 2019 budget time; and

(ii) before the 2020 announcement time; or

(d)    

were a reference to $ 150,000, if the amount is so included at any time:

(i) at or after the 2020 announcement time; and

(ii) on or before 31 December 2020; or

(e)    

were a reference to $ 20,000, if the amount is so included at any time:

(i) on or after 1 July 2023; and

(ii) on or before 30 June 2025.

328-180(5A)    
For the purposes of determining whether, under subsection 328-180(2) of the Income Tax Assessment Act 1997 , you can deduct, for an income year (the current year ), the taxable purpose proportion of an amount included in the second element of the cost of an asset, disregard paragraph (b) of that subsection if:

(a)    you first acquired the asset at or after the 2015 budget time; and

(b)    

you started to use the asset, or have it installed ready for use, for a taxable purpose:

(i) at or after the 2020 announcement time; and

(ii) before or during the current year; and

(iii) on or before 30 June 2021; and

(c)    the amount is so included:

(i) before or during the current year; and

(ii) after 31 December 2020.

Low pool value

328-180(6)    

Section 328-210 of the Income Tax Assessment Act 1997 applies as if a reference in that section to $ 1,000:

(a)    were a reference to $ 20,000, in relation to a deduction for an income year that ends:

(i) on or after 12 May 2015; and

(ii) before the 2019 application time; or

(b)    were a reference to $ 25,000, in relation to a deduction for an income year that ends:

(i) at or after the 2019 application time; and

(ii) before the 2019 budget time; or

(c)    

were a reference to $ 30,000, in relation to a deduction for an income year that ends:

(i) at or after the 2019 budget time; and

(ii) before the 2020 announcement time; or

(d)    

were a reference to $ 150,000, in relation to a deduction for an income year that ends:

(i) at or after the 2020 announcement time; and

(ii) on or before 31 December 2020; or

(e)    

were a reference to $ 20,000, in relation to a deduction for an income year that ends:

(i) on or after 1 July 2023; and

(ii) on or before 30 June 2025.