Taxation Laws Amendment Act (No. 2) 1999 (93 of 1999)

Schedule 3   Depreciation of plant previously owned by an exempt entity

Part 1   Income Tax Assessment Act 1997

5   At the end of section 42-200

Add:

(2) The operation of subsection (1) is affected, in relation to certain*plant to which Division 58 applies, by subsection 58-85(6).

(3) If a*transition entity had at any previous time been the owner or*quasi-owner of the*plant and had made a choice under paragraph 58-20(1)(a) in relation to the plant and either of the following paragraphs applies:

(a) the transferor was the transition entity and Common rule 1 applied to your acquisition of the plant;

(b) the transferor was not the transition entity and Common rule 1 applied to your acquisition of the plant and all earlier successive acquisitions of the plant by entities that acquired it from, or became the owners or quasi-owners of it after it was acquired from, the transition entity;

the cost of the plant is taken to be its*notional written down value at the transition time plus the amounts of any capital expenditure on improving it incurred after that time.