INCOME TAX (TRANSITIONAL PROVISIONS) ACT 1997 (ARCHIVE)

CHAPTER 2 - LIABILITY RULES OF GENERAL APPLICATION  

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

Division 42 - Depreciation  

SECTION 42-405 (ARCHIVE)  

42-405   Modifying Common rule 1 so that it may apply to a disposal of plant under the new depreciation provisions  
If:

(a) you have deducted or can deduct an amount for depreciation of plant under the old depreciation provisions; and

(b) in the 1997-98 income year or a later income year, a roll-over event occurs for the plant;

Subdivision 41-A of the 1997 Act (Common rule 1) applies as if:

(c) you had deducted or could deduct an amount for depreciation of the plant under the new depreciation provisions; and

(d) if in the 1996-97 income year or an earlier income year there was a disposal of the plant where roll-over relief was available under section 58 of the 1936 Act - that Common rule had applied to the disposal.

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