Income Tax (Transitional Provisions) Act 1997

CHAPTER 2 - LIABILITY RULES OF GENERAL APPLICATION  

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

Division 40 - Capital allowances  

Subdivision 40-BB - Temporary full expensing of depreciating assets  

SECTION 40-150   When an asset of yours qualifies for full expensing  

40-150(1)    

For the purposes of this Subdivision, you are covered by this section for a depreciating asset if, on or before 30 June 2023:

(a)    you start to hold the asset; and

(b)    you start to use the asset, or have it installed ready for use, for a taxable purpose.

Exception - assets to which Division 40 does not apply

40-150(2)    
Despite subsection (1) , you are not covered by this section for the asset if Division 40 of the Income Tax Assessment Act 1997 does not apply to the asset because of section 40-45 of that Act.

Exception - assets not used or located in Australia

40-150(3)    
Despite subsection (1) , you are not covered by this section for the asset if, at the time you first use the asset, or have it installed ready for use, for a taxable purpose:

(a)    it is not reasonable to conclude that you will use the asset principally in Australia for the principal purpose of carrying on a business; or

(b)    it is reasonable to conclude that the asset will never be located in Australia.

Exception - assets for which the decline in value is worked out under Subdivision 40-E or 40-F of the Income Tax Assessment Act 1997

40-150(4)    
Despite subsection (1) , you are not covered by this section for the asset if:

(a)    the asset is allocated to a low-value pool, or expenditure on the asset is allocated to a software development pool (see Subdivision 40-E of the Income Tax Assessment Act 1997 ); or

(b)    you or another taxpayer has deducted or can deduct amounts for the asset under Subdivision 40-F of the Income Tax Assessment Act 1997 (about primary production depreciating assets).