Income Tax Assessment Act 1936


Division 3 - Deductions  

Subdivision H - Period of deductibility of certain advance expenditure  


If this section applies to expenditure incurred by a taxpayer in a year of income:

(a) the taxpayer cannot deduct all of the expenditure for the expenditure year; and

(b) instead, the taxpayer can deduct, for each year of income during which part of the eligible service period for the expenditure occurs, an amount worked out using this formula:

Expenditure ×     Number of days of eligible service
            period in the year of income  
Total number of days of eligible
                        service period

This section has effect:

(a) despite section 8-1 of the Income Tax Assessment Act 1997 ; and

(b) subject to Division 245 of the Income Tax Assessment Act 1997 .


Deductions under section 355-205 or 355-480 of the Income Tax Assessment Act 1997 for R & D expenditure are subject to this section (see subsection 8-5(2) and section 355-105 of that Act).

(Repealed by No 90 of 2000)


Disclaimer and notice of copyright applicable to materials provided by CCH Australia Limited

CCH Australia Limited ("CCH") believes that all information which it has provided in this site is accurate and reliable, but gives no warranty of accuracy or reliability of such information to the reader or any third party. The information provided by CCH is not legal or professional advice. To the extent permitted by law, no responsibility for damages or loss arising in any way out of or in connection with or incidental to any errors or omissions in any information provided is accepted by CCH or by persons involved in the preparation and provision of the information, whether arising from negligence or otherwise, from the use of or results obtained from information supplied by CCH.

The information provided by CCH includes history notes and other value-added features which are subject to CCH copyright. No CCH material may be copied, reproduced, republished, uploaded, posted, transmitted, or distributed in any way, except that you may download one copy for your personal use only, provided you keep intact all copyright and other proprietary notices. In particular, the reproduction of any part of the information for sale or incorporation in any product intended for sale is prohibited without CCH's prior consent.