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 40-157   Corporate tax entities with income under $5 billion  

40-157(1)  
This section covers you for an income year if:

(a)  you are a corporate tax entity at any time in the income year; and

(b)  any of the following amounts is less than $5 billion:


(i) the sum of your ordinary income (if any) and statutory income (if any) for the 2018-19 income year;

(ii) if the 2019-20 income year ends on or before 6 October 2020 - the sum of your ordinary income (if any) and statutory income (if any) for the 2019-20 income year; and

(c)  the sum of the amounts worked out under subsection (3) for the 2016-17, 2017-18 and 2018-19 income years exceeds $100 million.

40-157(2)  
For the purposes of paragraph (1)(b), disregard non-assessable non-exempt income.

40-157(3)  
The amount under this subsection for an income year is worked out as follows:

(a)  firstly, identify each depreciating asset (other than an intangible asset) that:


(i) you hold at any time in the income year; and

(ii) you started to use, or have installed ready for use, for a taxable purpose in the income year;

(b)  next, work out the cost of each of those assets (including any amounts included in the second element of the asset ' s cost at a time that is in the income year);

(c)  finally, work out the total of those costs.

40-157(4)  
For the purposes of subsection (3), disregard an asset if, at the time you first used the asset, or had it installed ready for use, for a taxable purpose:

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

(b)  it was reasonable to conclude that the asset would never be located in Australia.




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