New Business Tax System (Capital Allowances) Act 2001 (76 of 2001)

Schedule 2   Effective life and low-cost plant

Income Tax Assessment Act 1997

2   Subsection 42-167(2)

Repeal the subsection, substitute:

(2) Despite sections 42-160 and 42-165, your deduction is the *plant’s cost for the income year in which you became its owner or *quasi-owner (regardless of when you acquired or constructed it) if that cost does not exceed $300 and:

(a) you are a *small business taxpayer for that income year; or

(b) each of these subparagraphs applies:

(i) you use the plant predominantly for the *purpose of producing assessable income that is not income from carrying on a *business; and

(ii) the plant is not part of a set of assets of which you became the owner or quasi-owner in that income year where the total cost of the set of assets exceeds $300; and

(iii) the total cost of the plant and any other identical, or substantially identical, item of plant of which you became the owner or quasi-owner in that income year does not exceed $300.