Income Tax (Transitional Provisions) 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-BB - Temporary full expensing of depreciating assets  

SECTION 40-150   When an asset of yours qualifies for full expensing  

40-150(1)  
For the purposes of this Subdivision, you are covered by this section for a depreciating asset if, on or before 30 June 2022:

(a)  you start to hold the asset; and

(b)  you start to use the asset, or have it installed ready for use, for a taxable purpose. Exception - assets to which Division 40 does not apply

40-150(2)  
Despite subsection (1), you are not covered by this section for the asset if Division 40 of the Income Tax Assessment Act 1997 does not apply to the asset because of section 40-45 of that Act. Exception - assets not used or located in Australia

40-150(3)  
Despite subsection (1), you are not covered by this section for the asset if, at the time you first use the asset, or have it installed ready for use, for a taxable purpose:

(a)  it is not reasonable to conclude that you will use the asset principally in Australia for the principal purpose of carrying on a business; or

(b)  it is reasonable to conclude that the asset will never be located in Australia. Exception - assets for which the decline in value is worked out under Subdivision 40-E or 40-F of the Income Tax Assessment Act 1997

40-150(4)  
Despite subsection (1), you are not covered by this section for the asset if:

(a)  the asset is allocated to a low-value pool, or expenditure on the asset is allocated to a software development pool (see Subdivision 40-E of the Income Tax Assessment Act 1997 ); or

(b)  you or another taxpayer has deducted or can deduct amounts for the asset under Subdivision 40-F of the Income Tax Assessment Act 1997 (about primary production depreciating assets).




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