Tax Laws Amendment (Small Business Measures No. 2) Act 2015 (67 of 2015)

Schedule 1   Accelerated depreciation for small business entities

Part 1   Main amendments

Income Tax (Transitional Provisions) Act 1997

9   After section 328-175

Insert:

328-180 Increased access to accelerated depreciation from 12 May 2015 to 30 June 2017

(1) In this section:

2015 budget time means 7.30 pm, by legal time in the Australian Capital Territory, on 12 May 2015.

increased access year means an income year that ends:

(a) on or after 12 May 2015; and

(b) on or before 30 June 2017.

Restrictions on making choice

(2) In determining whether you can choose to use Subdivision 328-D of the Income Tax Assessment Act 1997 in an increased access year, disregard subsection 328-175(10) of that Act.

(3) In applying paragraph 328-175(10)(b) of that Act for the purpose of determining whether you can choose to use that Subdivision in any income year after the increased access years, disregard:

(a) the increased access years, other than the last of the increased access years; and

(b) all earlier income years.

Assets costing less than $20,000

(4) Paragraph 328-180(1)(b) of the Income Tax Assessment Act 1997 applies to a depreciating asset as if a reference in that paragraph to $1,000 were a reference to $20,000, if:

(a) you first acquired the asset at or after the 2015 budget time; and

(b) you:

(i) first used the asset, for a taxable purpose, at or after the 2015 budget time and on or before 30 June 2017; or

(ii) first installed the asset ready for use, for a taxable purpose, at or after the 2015 budget time and on or before 30 June 2017.

(5) Paragraph 328-180(2)(a) or (3)(a) of the Income Tax Assessment Act 1997 applies to an amount included in the second element of the cost of an asset as if a reference in that paragraph to $1,000 were a reference to $20,000, if the amount is so included at any time:

(a) at or after the 2015 budget time; and

(b) on or before 30 June 2017.

Low value pool

(6) Section 328-210 of the Income Tax Assessment Act 1997 applies in relation to a deduction for an increased access year as if a reference in that section to $1,000 were a reference to $20,000.