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-B - Core provisions  

SECTION 40-80   Other expenditure incurred after 1 July 2001 on a depreciating asset  

40-80(1)  
This section applies to you if:


(a) you incur expenditure after 30 June 2001 that forms part of the cost of a depreciating asset; and


(b) the depreciating asset is one that you:


(i) started to hold under a contract entered into before 1 July 2001; or

(ii) constructed where the construction started before that day; or

(iii) started to hold in some other way before that day; and


(c) if you had incurred the expenditure before 1 July 2001, and had satisfied any relevant requirement for deductibility, you would have been able to deduct an amount for it under Division 44, 373 or 380, or Subdivision 46-B or 387-G, of the former Act.

40-80(2)  
Subdivision 40-B of the new Act applies to the asset on the basis that it has a cost, and an adjustable value, of zero at the start of 1 July 2001.





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