Income Tax (Transitional Provisions) Act 1997

This section covers you for an income year if:

you are a corporate tax entity at any time in the income year; and

any of the following amounts is less than $5 billion:

the sum of your ordinary income (if any) and statutory income (if any) for the 2018‑19 income year;

if the 2019‑20 income year ends on or before 6 October 2020—the sum of your ordinary income (if any) and statutory income (if any) for the 2019‑20 income year; and

the sum of the amounts worked out under subsection (3) for the 2016‑17, 2017‑18 and 2018‑19 income years exceeds $100 million.

For the purposes of paragraph (1)(b), disregard non‑assessable non‑exempt income.

The amount under this subsection for an income year is worked out as follows:

firstly, identify each depreciating asset (other than an intangible asset) that:

you hold at any time in the income year; and

you started to use, or have installed ready for use, for a taxable purpose in the income year;

next, work out the cost of each of those assets (including any amounts included in the second element of the asset’s cost at a time that is in the income year);

finally, work out the total of those costs.

For the purposes of subsection (3), disregard an asset if, at the time you first used the asset, or had it installed ready for use, for a taxable purpose:

it was not reasonable to conclude that you would use the asset principally in Australia for the principal purpose of carrying on a business; or

it was reasonable to conclude that the asset would never be located in Australia.

For the purposes of paragraph (3)(b), to work out the cost of a depreciating asset that is capital works (see section 43‑20 of the Income Tax Assessment Act 1997):

disregard section 40‑45 of that Act and work out the cost of the capital works using Subdivision 40‑C of that Act; and

disregard section 40‑215 of that Act.