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-D - Balancing adjustments  

SECTION 40-295   Later year relief  

40-295(1)    
You may exclude an amount that has been included in your assessable income for plant as a result of a balancing adjustment event that occurred in your 1999-2000 or 2000-01 income year to the extent that you choose under section 42-290 of the former Act to treat that amount as an amount you have deducted for the decline in value of replacement plant.

40-295(2)    
You can only make this choice for the replacement plant if:

(a) you acquire it:

(i) within 2 income years after the end of the income year in which the balancing adjustment event occurred; and

(ii) in your 2001-02 or 2002-2003 income year; and

(b) at the end of the income year in which you acquired it, you used it, or had it installed ready for use, wholly for the purpose of producing assessable income; and

(c) you can deduct an amount for its decline in value; and

(d) you had not made a choice under section 42-285 or 42-293 of the former Act for the balancing adjustment event.

40-295(3)    
The adjustable value of the replacement plant is reduced by the amount covered by the choice as at the first day of the income year in which you acquired it.