New Business Tax System (Capital Allowances) Act 2001 (76 of 2001)
Schedule 3 Second-hand plant
Income Tax Assessment Act 1997
1 At the end of section 42-25
Add:
Exception: plant acquired from associate
(4) For *plant that you acquire from an *associate of yours where the associate has deducted or can deduct an amount for the plant under this Division, you must use the same method the associate was using.
Exception: owner changes but user same or associate of former user
(5) For *plant that you acquire from a former owner or *quasi-owner of the plant, you must use the same method that the former owner or quasi-owner was using for the plant if:
(a) the former owner or quasi-owner or another entity (each of which is the former user ) was using the plant at a time before you became its owner or quasi-owner; and
(b) while you are the owner or quasi-owner of the plant, the former user or an *associate of the former user uses the plant.
(6) However, you must use the *diminishing value method if:
(a) you do not know, and cannot readily find out, which method the former owner or *quasi-owner was using; or
(b) the former owner or quasi-owner did not use a method.