Income Tax (Transitional Provisions) Act 1997

You can deduct 20% of particular expenditure for the 2022‑23 income year if:

you are a small business entity, or an entity covered by subsection (4), for the income year in which you incur the expenditure; and

you incur the expenditure in the period:

starting at 7.30 pm, by legal time in the Australian Capital Territory, on 29 March 2022; and

ending at the end of the 2022‑23 income year; and

you can deduct 100% of the expenditure under another provision of a taxation law (whether or not in, or wholly in, the income year in which the expenditure is incurred); and

section 328‑450 applies to the expenditure.

Subsection (1) does not apply if your 2022‑23 income year starts before 1 July 2022. Instead, you can deduct 20% of particular expenditure for your 2023‑24 income year if:

you are a small business entity, or an entity covered by subsection (4), for the income year in which you incur the expenditure; and

you incur the expenditure in the period:

starting at 7.30 pm, by legal time in the Australian Capital Territory, on 29 March 2022; and

ending at the end of your 2023‑24 income year; and

you can deduct 100% of the expenditure under another provision of a taxation law (whether or not in, or wholly in, the income year in which the expenditure is incurred); and

section 328‑450 applies to the expenditure.

You can deduct 20% of particular expenditure for an income year (the current year) if:

the current year is after:

if your 2022‑23 income year starts on or after 1 July 2022—your 2022‑23 income year; or

if your 2022‑23 income year starts before 1 July 2022—your 2023‑24 income year; and

you are a small business entity, or an entity covered by subsection (4), for the current year; and

you incur the expenditure in the current year and before the end of 30 June 2024; and

you can deduct 100% of the expenditure under another provision of a taxation law (whether or not in, or wholly in, the income year in which the expenditure is incurred); and

section 328‑450 applies to the expenditure.

An entity is covered by this subsection for an income year if:

the entity is not a small business entity for the income year; and

the entity would be a small business entity for the income year if:

each reference in Subdivision 328‑C (about what is a small business entity) of the Income Tax Assessment Act 1997 to $10 million were instead a reference to $50 million; and

the reference in paragraph 328‑110(5)(b) of that Act to a small business entity were instead a reference to an entity covered by this subsection.

The Income Tax Assessment Act 1997 has effect as if this section and section 328‑450 of this Act were provisions of Division 25 of the Income Tax Assessment Act 1997.

Sections 8‑10 and 355‑715 of the Income Tax Assessment Act 1997 do not apply in relation to a deduction under this section.