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

81D   Subsection 104-240(1) (definition of sum of reductions)

Repeal the definition, substitute:

sum of reductions is the sum of:

(a) in the case of the *depreciating asset - the reductions in your deductions for the asset under section 40-25; or

(b) in the case of the section 73BA depreciating asset - the reductions that would have been required under section 40-25 (including as applied for the purposes of section 73BC of the Income Tax Assessment Act 1936) on the assumption that when you used the asset either for a taxable purpose or for the purpose of the carrying on by or on behalf of you of research and development activities you used it for a taxable purpose.