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Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES

PART 3-45 - RULES FOR PARTICULAR INDUSTRIES AND OCCUPATIONS

Division 328 - Small business entities

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Subdivision 328-D - Capital allowances for small business entities

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Operative provisions

SECTION 328-180 Assets costing less than $1,000

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328-180(1)

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You deduct the *taxable purpose proportion of the *adjustable value of a *depreciating asset for the income year in which you start to use the asset, or have it *installed ready for use, for a *taxable purpose if:

(a) you were a *small business entity for that year and the year in which you started to *hold it; and

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(ab) you chose to use this Subdivision for each of those years; and

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(b) the asset is a depreciating asset whose *cost as at the end of the income year in which you start to use it, or have it installed ready for use, for a taxable purpose is less than $1,000.

Note:

This threshold may be affected by section 328-180 (about temporary increased access to accelerated depreciation) or 328-181 (about temporary full expensing) of the Income Tax (Transitional Provisions) Act 1997 .

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History

S 328-180(1) amended by No 92 of 2020, s 3 and Sch 7 item 18, by substituting the note, effective 1 January 2021. The note formerly read:

Note:

This threshold may be $20,000, $25,000, $30,000 or $150,000 for assets you first acquire between 12 May 2015 and 31 December 2020: see subsections 328-180(4) and (4A) of the Income Tax (Transitional Provisions) Act 1997 .

S 328-180(1) amended by No 61 of 2020, s 3 and Sch 4 item 12, by substituting " 31 December 2020: see subsections 328-180(4) and (4A) " for " 30 June 2020: see subsection 328-180(4) " in the note of para (b), effective 20 June 2020.

S 328-180(1) amended by No 22 of 2020, s 3 and Sch 1 item 8, by substituting " $25,000, $30,000 or $150,000 " for " $25,000 or $30,000 " in the note of para (b), effective 25 March 2020.

S 328-180(1) amended by No 51 of 2019, s 3 and Sch 1 item 1, by substituting the note of para (b), effective 1 July 2019. The note formerly read:

Note:

This threshold is $20,000 for assets you first acquire between 12 May 2015 and 30 June 2019: see subsection 328-180(4) of the Income Tax (Transitional Provisions) Act 1997 .

S 328-180(1) amended by No 109 of 2018, s 3 and Sch 1 item 1, by substituting " 30 June 2019 " for " 30 June 2018 " in the note of para (b), effective 1 October 2018.

S 328-180(1) amended by No 56 of 2017, s 3 and Sch 1 item 1, by substituting " and 30 June 2018 " for " and 30 June 2017 " in the note of para (b), effective 1 July 2017.

S 328-180(1) amended by No 67 of 2015, s 3 and Sch 1 item 2, by inserting a note at the end of para (b), effective 22 June 2015.

S 328-180(1) amended by No 96 of 2014, s 3 and Sch 3 item 3, by substituting " $1,000 " for " $6,500 " in para (b), effective 30 September 2014. No 96 of 2014, s 3 and Sch 3 item 11 contains the following application provision:

11 Application of amendments
11(1)
Subject to subitems (2) and (3), the amendments made by this Schedule apply to a depreciating asset if:

(a) the asset was first installed ready for use, for a taxable purpose, on or after the application day; or

(b) the asset was first used, for a taxable purpose, on or after the application day, but was not installed ready for use prior to the application day.

11(2)
The amendments made by item 4 of this Schedule apply to an amount if the amount is included in the second element of the cost of a depreciating asset at any time on or after the application day.

11(3)
The amendments made by items 5 and 6 of this Schedule apply to assessments for the income year before the income year in which this Schedule commences, for the income year in which this Schedule commences or for a later income year.

11(4)
In this item:
application day
means 1 January in the income year before the income year in which this Schedule commences.

S 328-180(1) amended by No 23 of 2012, s 3 and Sch 2 item 69, by substituting " $6,500 " for " $5,000 " in para (b), applicable in relation to the 2012-13 income year and later income years.

S 328-180(1) amended by No 23 of 2012, s 3 and Sch 2 item 9, by substituting " depreciating asset whose *cost as at the end of the income year in which you start to use it, or have it installed ready for use, for a taxable purpose is less than $5,000 " for " *low-cost asset " in para (b), applicable in relation to the 2012-13 income year and later income years.

S 328-180(1) amended by No 80 of 2007 , s 3 and Sch 3 items 13 and 14, by substituting " a *small business entity " for " an *STS taxpayer " in para (a) and inserting para (ab), applicable in relation to the 2007-08 income year and later income years.

S 328-180(1) amended by No 119 of 2002.

328-180(2)

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You can also deduct, for an income year for which you are a *small business entity and you choose to use this Subdivision, the *taxable purpose proportion of an amount included in the second element of the *cost of an asset for which you have deducted an amount under subsection (1) if:

(a) the amount so included is less than $1,000; and

Note:

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(b) you started to use the asset, or have it *installed ready for use, for a *taxable purpose during an earlier income year.

Note:

Paragraph (b) may not apply for costs included after 31 December 2020 for assets you first acquire between 12 May 2015 and 31 December 2020: see subsection 328-180(5A) of the Income Tax (Transitional Provisions) Act 1997 .

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History

S 328-180(2) amended by No 92 of 2020, s 3 and Sch 7 item 19, by substituting the note of para (a), effective 1 January 2021. The note of para (a) formerly read:

Note:

This threshold is $20,000, $25,000, $30,000 or $150,000 for costs included between 12 May 2015 and 31 December 2020: see subsection 328-180(5) of the Income Tax (Transitional Provisions) Act 1997 .

S 328-180(2) amended by No 61 of 2020, s 3 and Sch 4 items 13 and 14, by substituting " 31 December 2020 " for " 30 June 2020 " in the note of para (a) and inserting the note of para (b), effective 20 June 2020.

S 328-180(2) amended by No 22 of 2020, s 3 and Sch 1 item 9, by substituting " $25,000, $30,000 or $150,000 " for " $25,000 or $30,000 " in the note of para (a), effective 25 March 2020.

S 328-180(2) amended by No 51 of 2019, s 3 and Sch 1 item 2, by substituting the note of para (a), effective 1 July 2019. The note formerly read:

Note:

This threshold is $20,000 for costs included between 12 May 2015 and 30 June 2019: see subsection 328-180(5) of the Income Tax (Transitional Provisions) Act 1997 .

S 328-180(2) amended by No 109 of 2018, s 3 and Sch 1 item 2, by substituting " 30 June 2019 " for " 30 June 2018 " in the note of para (a), effective 1 October 2018.

S 328-180(2) amended by No 56 of 2017, s 3 and Sch 1 item 2, by substituting " and 30 June 2018 " for " and 30 June 2017 " in the note of para (a), effective 1 July 2017.

S 328-180(2) amended by No 67 of 2015, s 3 and Sch 1 item 3, by inserting a note at the end of para (a), effective 22 June 2015.

S 328-180(2) amended by No 96 of 2014, s 3 and Sch 3 item 4, by substituting " $1,000 " for " $6,500 " in para (a), effective 30 September 2014. For application provision see note under s 328-180(1) .

S 328-180(2) amended by No 23 of 2012, s 3 and Sch 2 item 69, by substituting " $6,500 " for " $5,000 " in para (a), applicable in relation to the 2012-13 income year and later income years.

S 328-180(2) amended by No 23 of 2012, s 3 and Sch 2 items 10 - 11, by substituting " an asset " for " a *low cost asset " , and substituting " $5,000 " for " $1,000 " in para (a), applicable in relation to the 2012-13 income year and later income years.

S 328-180(2) amended by No 80 of 2007 , s 3 and Sch 3 item 15, by substituting " , for an income year for which you are a *small business entity and you choose to use this Subdivision, " for " for an income year for which you are an *STS taxpayer " , applicable in relation to the 2007-08 income year and later income years.

S 328-180(2), (3), (4) and (5) substituted for s 328-180(2) by No 119 of 2002.

328-180(3)

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An asset for which you have deducted an amount under this section is allocated to your *general small business pool if:

(a) an amount of $1,000 or more is included in the second element of the asset ' s *cost; or

Note:

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(b) any amount is included in the second element of the asset ' s cost and you have deducted or can deduct an amount under subsection (2) for an amount previously included in the second element of the asset ' s cost.

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History

S 328-180(3) amended by No 92 of 2020, s 3 and Sch 7 item 20, by substituting the note of para (a), effective 1 January 2021. The note of para (a) formerly read:

Note:

This threshold is $20,000, $25,000, $30,000 or $150,000 for costs included between 12 May 2015 and 31 December 2020: see subsection 328-180(5) of the Income Tax (Transitional Provisions) Act 1997 .

S 328-180(3) amended by No 61 of 2020, s 3 and Sch 4 item 15, by substituting " 31 December 2020 " for " 30 June 2020 " in the note of para (a), effective 20 June 2020.

S 328-180(3) amended by No 22 of 2020, s 3 and Sch 1 item 10, by substituting " $25,000, $30,000 or $150,000 " for " $25,000 or $30,000 " in the note of para (a), effective 25 March 2020.

S 328-180(3) amended by No 51 of 2019, s 3 and Sch 1 item 3, by substituting the note of para (a), effective 1 July 2019. The note formerly read:

Note:

This threshold is $20,000 for costs included between 12 May 2015 and 30 June 2019: see subsection 328-180(5) of the Income Tax (Transitional Provisions) Act 1997 .

S 328-180(3) amended by No 109 of 2018, s 3 and Sch 1 item 3, by substituting " 30 June 2019 " for " 30 June 2018 " in the note of para (a), effective 1 October 2018.

S 328-180(3) amended by No 56 of 2017, s 3 and Sch 1 item 3, by substituting " and 30 June 2018 " for " and 30 June 2017 " in the note of para (a), effective 1 July 2017.

S 328-180(3) amended by No 67 of 2015, s 3 and Sch 1 item 3, by inserting a note at the end of para (a), effective 22 June 2015.

S 328-180(3) amended by No 96 of 2014, s 3 and Sch 3 item 4, by substituting " $1,000 " for " $6,500 " in para (a), effective 30 September 2014. For application provision see note under s 328-180(1) .

S 328-180(3) amended by No 23 of 2012, s 3 and Sch 2 item 69, by substituting " $6,500 " for " $5,000 " in para (a), applicable in relation to the 2012-13 income year and later income years.

S 328-180(3) amended by No 23 of 2012, s 3 and Sch 2 items 12 - 13, by substituting " An asset " for " A *low-cost asset " , and substituting " $5,000 " for " $1,000 " in para (a), applicable in relation to the 2012-13 income year and later income years.

S 328-180(3) amended by No 80 of 2007 , s 3 and Sch 3 item 16, by substituting " small business pool " for " STS pool " , applicable in relation to the 2007-08 income year and later income years.

S 328-180(2), (3), (4) and (5) substituted for s 328-180(2) by No 119 of 2002.

328-180(4)

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This Division applies to the asset as if its *adjustable value were the amount included in the second element of its *cost as mentioned in subsection (3).

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328-180(5)

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Subsection (3) applies even if the amount is included in the second element of the asset ' s *cost during an income year for which you are not a *small business entity or do not choose to use this Subdivision.

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