Taxation Laws Amendment Act 1993 (17 of 1993)

Part 3   AMENDMENT OF THE INCOME TAX ASSESSMENT ACT 1936

Division 6   Amendments to modify a taxpayer's ability to nominate a lower annual depreciation percentage for a particular unit of property

23   Annual depreciation percentage

Section 55 of the Principal Act is amended by omitting subsection (8) and substituting the following subsections:

"(8) A taxpayer may nominate a percentage as the annual depreciation percentage for a specified unit of property in respect of which depreciation is first allowable to the taxpayer for a year of income if the nominated percentage is:

(a) less than the percentage that would otherwise be that annual depreciation percentage; and

(b) equal to or greater than the percentage calculated (to 2 decimal places) using the formula:

(1.5 / No. of years in effective life) * 100

where:

'No. of years in effective life' means the number (calculated to 2 decimal places) of years in the effective life of the property.

"(8A) A nomination under subsection (8) has effect for the purposes of determining the depreciation allowable to the taxpayer in respect of the unit of property for the year of income mentioned in that subsection and for all later years of income.".