Income Tax Assessment Act 1997
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View history noteDiv 328 (heading) substituted by No 80 of 2007 , s 3 and Sch 3 item 1, applicable in relation to the 2007-08 income year and later income years. The heading formerly read:
Division 328 - STS taxpayers
Div 328 inserted by No 78 of 2001.
Subdiv 328-D (heading) substituted by No 80 of 2007 , s 3 and Sch 3 item 3, applicable in relation to the 2007-08 income year and later income years. The heading formerly read:
Subdivision 328-D - Capital allowances for STS taxpayers
Subdiv 328-D inserted by No 78 of 2001.
You calculate your deduction for your *general small business pool for an income year using this formula:
*Opening pool balance × 30%
Note:
You use section 328-210 instead if the pool has a low pool value.
S 328-190(1) amended by No 23 of 2012, s 3 and Sch 2 items 24 - 27, by substituting " your *general small business pool " for " each pool " , substituting the formula, omitting " where: " after the formula, and repealing the definition of " pool rate " , applicable in relation to the 2012-13 income year and later income years. The formula and the definition of " pool rate " formerly read:
*Opening pool balance × Pool rate
pool rate
is:
(a) 30% for a * general small business pool; or
(b) 5% for a * long life small business pool.
S 328-190(1) amended by No 80 of 2007 , s 3 and Sch 3 item 30, by substituting " small business " for " STS " (wherever occurring), applicable in relation to the 2007-08 income year and later income years.
Your deduction for each *depreciating asset that you start to use, or have *installed ready for use, for a *taxable purpose during an income year for which you are a *small business entity and choose to use this Subdivision is 15% of the *taxable purpose proportion of its *adjustable value.
S 328-190(2) substituted by No 23 of 2012, s 3 and Sch 2 item 28, applicable in relation to the 2012-13 income year and later income years. S 328-190(2) formerly read:
328-190(2)
Your deduction for each * depreciating asset that you start to use, or have * installed ready for use, for a * taxable purpose during an income year for which you are a *small business entity and choose to use this Subdivision is:
(a) 15% of the * taxable purpose proportion of its * adjustable value if its * effective life is less than 25 years; or
(b) 2.5% of the taxable purpose proportion of its adjustable value if its effective life is 25 years or more.
S 328-190(2) amended by No 80 of 2007 , s 3 and Sch 3 item 31, by substituting " for which you are a *small business entity and choose to use this Subdivision " for " while you are an *STS taxpayer " , applicable in relation to the 2007-08 income year and later income years.
(Repealed by No 96 of 2014)
S 328-190(2A) repealed by No 96 of 2014, s 3 and Sch 4 item 1, effective 30 September 2014. For application provision see note under s 328-250(1) . S 328-190(2A) formerly read:
328-190(2A)
Subsection (2) does not apply to a *depreciating asset that is a *motor vehicle if section 328-237 applies to the asset for the income year.
S 328-190(2A) inserted by No 23 of 2012, s 3 and Sch 3 item 1, applicable in relation to entities and depreciating assets the entities started to hold (as defined in section 40-40 of the Income Tax Assessment Act 1997 ) in the 2012-13 income year and later income years.
You can also deduct for an income year for which you are a *small business entity and choose to use this Subdivision the amount worked out under subsection (4) for an amount (the cost addition amount ) included in the second element of the * cost of a * depreciating asset for that year if you started to use the asset, or have it * installed ready for use, for a * taxable purpose during an earlier income year.
Note:
The second element of cost is worked out under section 40-190 .
S 328-190(3) amended by No 80 of 2007 , s 3 and Sch 3 item 32, by substituting " a *small business entity and choose to use this Subdivision " for " an *STS taxpayer " , applicable in relation to the 2007-08 income year and later income years.
The amount you can deduct is 15% of the *taxable purpose proportion of the cost addition amount.
Note:
The amounts that a transferor and transferee can deduct under this section are modified if roll-over relief under section 40-340 is chosen: see sections 328-243 and 328-247 .
S 328-190(4) (excluding the note) substituted by No 23 of 2012, s 3 and Sch 2 item 29, applicable in relation to the 2012-13 income year and later income years. S 328-190(4) formerly read:
328-190(4)
The amount you can deduct is:
(a) 15% of the * taxable purpose proportion of the cost addition amount if the asset ' s * effective life is less than 25 years; or
(b) 2.5% of the taxable purpose proportion of the cost addition amount if the asset ' s effective life is 25 years or more.
S 328-190(4) amended by No 80 of 2007 , s 3 and Sch 3 item 33, by substituting " under section 40-340 is chosen: see sections 328-243 and 328-247. " for all the words after " relief " in the note, applicable in relation to the 2007-08 income year and later income years. The words formerly read:
S 328-190(4) amended by No 41 of 2005.
S 328-190 amended by No 20 of 2004 and inserted by No 78 of 2001.
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