INCOME TAX (TRANSITIONAL PROVISIONS) ACT 1997 (ARCHIVE)
CHAPTER 2
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LIABILITY RULES OF GENERAL APPLICATION
PART 2-10
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CAPITAL ALLOWANCES: RULES ABOUT DEDUCTIBILITY OF CAPITAL EXPENDITURE
Division 42
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Depreciation
SECTION 42-120 (ARCHIVE)
Which rate do you use? (application of old transitional provision)
42-120(1)
This section applies to you if:
(a) you acquire plant after the beginning of the 1997-98 income year; and
(b) if the 1997 Act had not been enacted, you would be taken to have acquired the plant under a contract entered into before 27 February 1992 by section 66 of the Taxation Laws Amendment Act (No. 2) 1992 .
42-120(2)
Your rate is the annual depreciation percentage worked out under the old depreciation provisions.
42-120(3)
If you are using the diminishing value method, you multiply that percentage by 1.5.
This section applies to you if:
(a) you acquire plant after the beginning of the 1997-98 income year; and
(b) if the 1997 Act had not been enacted, you would be taken to have acquired the plant under a contract entered into before 27 February 1992 by section 66 of the Taxation Laws Amendment Act (No. 2) 1992 .
42-120(2)
Your rate is the annual depreciation percentage worked out under the old depreciation provisions.
42-120(3)
If you are using the diminishing value method, you multiply that percentage by 1.5.
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