Income Tax Assessment Act 1936

PART III - LIABILITY TO TAXATION  

Division 16D - Certain arrangements relating to the use of property  

SECTION 159GF   RESIDUAL AMOUNTS  

159GF(1)    

Subject to subsection 159GJ(1) , in this Division a reference to the residual amount at a particular time (in this subsection referred to as the relevant time ) in relation to the eligible amount by reason of which an item of property is eligible depreciation property at the relevant time is a reference to the eligible amount reduced by:

(a) where the item of property was not dealt with by the taxpayer who holds the item in the prescribed manner at any time during the period (in this subsection referred to as the relevant period ) before the relevant time when it was held by the taxpayer (within the meaning of Division 40 of the Income Tax Assessment Act 1997 ) - the total amount of deductions for depreciation or decline in value that would, but for any deduction denying provision, have been allowable to the taxpayer under this Act or the Income Tax Assessment Act 1997 in respect of that item of property for the relevant period if:

(i) at all times during the relevant period the taxpayer had wholly and exclusively dealt with the item of property in the prescribed manner; and

(ii) those deductions were calculated using the diminishing value method; and

(iii) section 57AG , as in force immediately before the commencement of section 1 of the Taxation Laws Amendment Act 1992 , did not apply in relation to the item of property;

(b) where the item of property was wholly and exclusively dealt with by the taxpayer who held the item in the prescribed manner at all times during the relevant period - the total amount of deductions for depreciation or decline in value that were or, but for any deduction denying provision, would have been, allowed or allowable to the taxpayer in respect of the item of property for that period under this Act or the Income Tax Assessment Act 1997 ; and

(c) in any other case - the total amount of deductions for depreciation or decline in value that, but for any deduction denying provision, would have been allowable to the taxpayer who holds the item of property in respect of the item under this Act or the Income Tax Assessment Act 1997 for the relevant period if:

(i) the taxpayer had wholly and exclusively dealt with the item of property in the prescribed manner at all times during the relevant period; and

(ii) in respect of any part of the relevant period for which deductions for depreciation or decline in value were or, but for any deduction denying provision, would have been allowed or allowable under this Act or the Income Tax Assessment Act 1997 - the deductions were allowable on the same basis and at the same percentage as was or would have been allowed or allowable for that part of the relevant period; and

(iii) in respect of any other part (in this subparagraph referred to as the relevant part ) of the relevant period - the deductions were allowable:

(A) where the relevant part was immediately succeeded by another part of the relevant period in respect of which deductions for depreciation or decline in value were or, but for any deduction denying provision, would have been allowed or allowable under this Act or the Income Tax Assessment Act 1997 - on the same basis and at the same percentage as was or would have been allowed or allowable in respect of that other part; and

(B) in any other case - on the same basis and at the same percentage as was or, but for any deduction denying provision, would have been allowed or allowable under this Act or the Income Tax Assessment Act 1997 in respect of the part of the relevant period for which deductions for depreciation or decline in value was or would have been allowed or allowable, being the part that immediately preceded the relevant part.

159GF(2)    
For the purposes of subsection (1):

(a) an item of eligible depreciation property shall be taken to be dealt with by a taxpayer in the prescribed manner at a particular time if:

(i) the item of property is used by the taxpayer at that time for the purpose of producing assessable income; or

(ii) the item of property is, at that time, installed ready for use for the purpose of producing assessable income and held in reserve by the taxpayer; and

(b) a reference to a deduction denying provision is a reference to a provision of this Act that would have the effect of denying an entitlement in whole or in part to a deduction otherwise wholly allowable under this Act.

159GF(3)    
Subject to subsection 159GJ(2) , where any of the following amounts (in this subsection referred to as the attributable amount ):

(a) an amount of residual previous capital expenditure within the meaning of the former Division 10 or 10AA;

(b) an amount of residual capital expenditure within the meaning of the former Division 10, 10AA or 10A;

(c) an amount of residual (1 May 1981 to 18 August 1981) capital expenditure within the meaning of the former Division 10 or 10AA;

(d) an amount of residual (19 August 1981 to 19 July 1982) capital expenditure within the meaning of the former Division 10 or 10AA;

(e) so much as is unrecouped of an amount of allowable (post-19 July 1982) capital expenditure within the meaning of the former Division 10 or 10AA ;

(f) so much as is unrecouped of an amount of allowable capital expenditure within the meaning of the former Subdivision 330-C of the Income Tax Assessment Act 1997 ;

(fa) so much of an amount of mining capital expenditure or transport capital expenditure (within the meaning of the Income Tax Assessment Act 1997 ) as has not been deducted under Division 40 of that Act;

(g) the difference between capital expenditure and previous deductions as defined in the former subsection 387-470(1) of the Income Tax Assessment Act 1997 ;

(h) the difference between the cost of a forestry road or timber mill building for the purposes of Division 40 of the Income Tax Assessment Act 1997 and its adjustable value for the purposes of that Division,

ascertained as at the end of a year of income, is attributable in whole or in part to an amount of expenditure (in this subsection referred to as the relevant expenditure ) by reason of which an item of property is Division 10, 10AA or 10A property, in this Division a reference to the residual amount at any time during the year of income in relation to the relevant expenditure is a reference to so much of the attributable amount as is attributable to the relevant expenditure.

159GF(4)    

Subject to subsection 159GJ(3) , in this Division a reference to the residual amount at a particular time in relation to an amount of expenditure by reason of which an item of property is Division 10AAA property is a reference to the amount of expenditure reduced by any part of that expenditure that has been allowed or is allowable as a deduction under the former Division 10AAA of this Part or the former Subdivision 330-H of the Income Tax Assessment Act 1997 , or under Subdivision 40-I of that Act for transport capital expenditure, from the assessable income of any taxpayer of a year of income preceding the year of income in which the particular time occurs.

159GF(5)    

Subject to subsection 159GJ(4) , in this Division a reference to the residual amount at a particular time in relation to an amount of expenditure by reason of which an item of property is Division 10C or 10D property is a reference to the residual capital expenditure within the meaning of the former Division 10C or 10D of this Part, or to the undeducted construction expenditure within the meaning of Division 43 of the Income Tax Assessment Act 1997 , as appropriate, at that time in relation to the amount of expenditure.

159GF(6)    

In this Division, a reference to the residual amount at a particular time in relation to an amount of expenditure because of which an item of property is an eligible spectrum licence is a reference to:

(a) the amount of unrecouped expenditure (within the meaning of the former section 380-20 of the Income Tax Assessment Act 1997 ) on that licence at that time; or

(b) the adjustable value of that licence (within the meaning of Division 40 of that Act) at that time.