Taxation Laws Amendment Act (No. 5) 2002 (119 of 2002)

Schedule 3   Capital allowances

Income Tax Assessment Act 1997

38   Subsection 40-365(5)

Repeal the subsection, substitute:

(5) For the purposes of applying this Act to the replacement asset:

(a) its *cost is reduced by the amount covered by the choice for the income year in which the asset's *start time occurs; and

(b) if the income year is later than the one in which the asset's *start time occurs - the sum of its *opening adjustable value for that later year and any amount included in the second element of the asset's cost for that later year is reduced by the amount covered by the choice.