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 42-8 (ARCHIVE)   Rules where Common rule 1 applies  
Effective life

42-8(1)    
Subdivision 42-C of the 1997 Act does not apply to plant if:

(a) Common rule 1 in Subdivision 41-A of the 1997 Act applied to your acquisition of it; and

(b) the transferor, or an earlier successive transferor, acquired or constructed it before 13 March 1991.

Rate

42-8(2)    
If:

(a) Common rule 1 applied to your acquisition of plant; and

(b) the rate for the transferor, or an earlier successive transferor, was an annual depreciation percentage worked out under the old depreciation provisions;

you use the rate worked out under subsections 42-6(5), (6) and (7).

42-8(3)    
In working out that rate, you are taken to have acquired or constructed the plant at the time when:

(a) the transferor; or

(b) if there were earlier successive transferors - the earliest successive transferor;

acquired or constructed it for the purposes of the old depreciation provisions.