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 40-50   Forestry roads and timber mill buildings  

40-50(1)    
This section applies to you if:

(a) you have deducted or can deduct an amount under Subdivision 387-G of the former Act for an amount (the qualifying amount ) of expenditure on a forestry road or timber mill building or could have deducted an amount under that Subdivision if you had used the road or building for the purpose of producing assessable income; and

(b) you hold the road or building at the end of 30 June 2001.

40-50(2)    
Division 40 of the new Act applies to the asset on this basis:

(a) it has an opening adjustable value at 1 July 2001 equal to the qualifying amount less any amounts you have deducted or can deduct for it under the former Act; and

(b) in applying the formula in section 40-75 of the new Act for your income year in which 1 July 2001 occurs - you use the adjustments in subsection 40-75(3) of the new Act; and

(c) its cost is the qualifying amount; and

(d) it has an effective life equal to the remaining life you last estimated for it under the former Act; and

(e) you can recalculate its effective life if you conclude that your estimate is no longer accurate (except that the effective life cannot exceed 25 years); and

(f) you must use the prime cost method.

Note:

There are special rules for entities that have substituted accounting periods: see section 40-65 .