Income Tax Assessment Act 1997

This Division sets out special rules that apply in calculating deductions for the decline in value of depreciating assets and balancing adjustments for assets previously owned by an exempt entity if the assets:

• continue to be owned by that entity after the entity becomes taxable; or

• are acquired from that entity, in connection with the acquisition of a business, by a purchaser that is a taxable entity.

There is a choice of 2 methods for each depreciating asset:

• the notional written down value method; and

• the undeducted pre-existing audited book value method.