Income Tax Assessment Act 1997

CHAPTER 2 - LIABILITY RULES OF GENERAL APPLICATION  

PART 2-10 - CAPITAL ALLOWANCES: RULES ABOUT DEDUCTIBILITY OF CAPITAL EXPENDITURE  

Division 41 - Additional deduction for certain new business investment  

Operative provisions  

SECTION 41-10   Entitlement to deduction for investment  

41-10(1)    
You can deduct an amount for an income year in relation to an asset if:

(a) the asset is a *depreciating asset, other than an intangible asset; and

(b) you can deduct an amount under section 40-25 in relation to the asset for the income year; and

(c) the income year is the 2008-09, 2009-10, 2010-11 or 2011-12 income year; and

(d) the total of the *recognised new investment amounts for the income year in relation to the asset equals or exceeds the *new investment threshold for the income year in relation to the asset.

41-10(2)    

Subsection 355-715(2) (tax offset for assets used for R & D activities) does not apply to a deduction under subsection (1).

41-10(3)    
For the purposes of paragraph (1)(b), in determining whether you can deduct the amount in relation to the asset under section 40-25 for the income year:

(a) (Repealed by No 162 of 2015)

(aa) disregard section 40-90 (reduction in cost where debt is forgiven); and

(ab) disregard subsection 40-365(5) (reduction in cost for replacement asset where involuntary disposal); and

(b) disregard Subdivision 328-D (capital allowances for small business entities); and

(c) disregard subsection 355-715(2) (tax offset for assets used for R & D activities).

Counting additional recognised new investment amounts for the purposes of meeting the threshold

41-10(4)    
For the purposes of paragraph (1)(d), treat each of the following as a *recognised new investment amount for the income year in relation to the asset (the relevant asset ):

(a) a recognised new investment amount for a previous income year in relation to the relevant asset;

(b) a recognised new investment amount for the income year or a previous income year in relation to another asset, if:

(i) the other asset is part of a set of assets including the relevant asset; or

(ii) the other asset is identical, or substantially identical, to the relevant asset;

(c) a recognised new investment amount for the income year or a previous income year in relation to an asset *held by another entity, if:

(i) subsection 40-35(1) (jointly held depreciating assets) applies in relation to the relevant asset because it is your interest in an asset (the underlying asset ); and

(ii) the asset held by the other entity is the other entity's interest in the underlying asset.