INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

SCHEDULE 2D - Tax exempt entities that become taxable  

Subdivision 57-I - Depreciation deductions  

SECTION 57-80   DEPRECIATION  

57-80(1)   [Application of section]  

This section applies in determining a deduction allowable to the transition taxpayer in respect of any period (the depreciation period ) after the transition time for depreciation under Subdivision A of Division 3 of Part III in respect of a unit of property, if the property was owned by the transition taxpayer at the transition time.

57-80(2)   Assume that the transition taxpayer had never been exempt.  

Assume that, at all times before the transition time, when the unit of property was owned by:

(a) the transition taxpayer; or

(b) an associate (see subsection (5));

the transition taxpayer's income had not been exempt from income tax and no provision of this Act had denied a deduction for depreciation in respect of the unit.

57-80(3)   Deemed method of depreciation.  

The transition taxpayer is taken to have used the same method of depreciation in relation to the unit of property in each year before the transition year as it uses for:

(a) the transition year; or

(b) if the transition taxpayer does not claim depreciation for the transition year - the first year after the transition year in which the transition taxpayer claims depreciation.

57-80(4)   Elections under section 54A.  

If, assuming that the income of the transition taxpayer had never been wholly exempt from income tax, the transition taxpayer could have made an election under subsection 54A(1) at a particular time before the transition time, the transition taxpayer is taken to have made the election at that time.

57-80(5)   Elections under subsection 59(2A).  

If, assuming that the income of the transition taxpayer had never been wholly exempt from income tax, the transition taxpayer could have made or could make an election under subsection 59(2A) in relation to the disposal, loss or destruction of a unit of property taking place before the transition time, the transition taxpayer is taken not to have made and not to be able to make that election.

57-80(6)   Definitions.  

In this section:

associate
has the same meaning as in subsection 26AAB(14) .

method of depreciation
means the way of working out the depreciation allowable under this Act in respect of a unit of property set out in paragraph 56(1)(a) or (b).