Taxation Laws Amendment (Research and Development) Act 2001 (170 of 2001)

Schedule 2   Plant etc.

Part 3   Effective life basis for deduction

Division 2   Amendments commencing immediately after the New Business Tax System (Capital Allowances) Act 2001

Income Tax Assessment Act 1997

81A   After subsection 104-235(1)

Insert:

(1A) However, subsection (1) does not apply if you are an eligible company (within the meaning of section 73B of the Income Tax Assessment Act 1936) and the *depreciating asset is a section 73BA depreciating asset (within the meaning of section 73BB of that Act).

(1B) CGT event K7 also happens if:

(a) you are an eligible company; and

(b) a *balancing adjustment event occurs for a section 73BA depreciating asset you *held; and

(c) at some time when you held the asset:

(i) you used it other than for a taxable purpose or the purpose of the carrying on by or on behalf of you of research and development activities (within the meaning of section 73B of the Income Tax Assessment Act 1936); or

(ii) you had it installed ready for use other than for a taxable purpose.

Note: The heading to section 104-235 is altered by inserting " and section 73BA depreciating assets " after " depreciating assets ".