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-BA - Backing business investment  

SECTION 40-135   Division 40 of the Income Tax Assessment Act 1997 applies to later years  

40-135(1)    
The decline in value of a depreciating asset is not worked out under this Subdivision for an income year if this Subdivision already applied in working out the decline in value of the asset for an income year.

40-135(2)    
For an income year later than the year in which the decline in value is worked out under this Subdivision, the decline in value is worked out under the other provisions of Division 40 of the Income Tax Assessment Act 1997 .

Adjustment required for prime cost method

40-135(3)    
If you use the prime cost method for the asset, you must adjust the formula in subsection 40-75(1) of the Income Tax Assessment Act 1997 for the later year in the manner set out in subsection 40-75(3) of that Act. The later year is the change year referred to in that subsection.

Balancing adjustment provisions

40-135(4)    
Subdivision 40-D of the Income Tax Assessment Act 1997 has effect as if the decline in value worked out under this Subdivision had been worked out under Subdivision 40-B of that Act.