Income Tax (Transitional Provisions) Act 1997

For the purposes of Division 40 of the Income Tax Assessment Act 1997, the decline in value of a depreciating asset for an income year is the amount worked out under section 40‑130 if:

the income year is the year in which you start to use the asset, or have it installed ready for use, for a taxable purpose; and

subsection (2) (about businesses with turnover less than $500 million) applies to you for the year and for the income year in which you started to hold the asset (if that was an earlier year); and

you are covered by section 40‑125 for the asset; and

you have not made a choice under section 40‑137 in relation to the income year.

An effect of paragraph (1)(a) is that this Subdivision only applies to one income year per asset. See also subsection 40‑135(1).

This subsection does not apply if Subdivision 40‑BB of this Act applies: see section 40‑145 of this Act.

This subsection applies to you for an income year if you:

are a small business entity; or

would be a small business entity if:

each reference in Subdivision 328‑C of the Income Tax Assessment Act 1997 (about what is a small business entity) to $10 million were instead a reference to $500 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.

However, this section does not apply to a depreciating asset for an income year if you work out the decline in value of the asset for the income year under any of the following:

section 40‑82 of the Income Tax Assessment Act 1997;

Subdivision 40‑E or 40‑F of that Act.