Income Tax (Transitional Provisions) Act 1997

Despite its repeal by this Act, Division 46 of the former Act continues to apply to expenditure on software that you incurred and that was in a software pool under that Division at the end of 30 June 2001.

For a unit of software for which you were deducting amounts under Subdivision 46‑B of the former Act or for which you could have deducted amounts under that Subdivision if you had used the software for the purpose of producing assessable income before 1 July 2001, Division 40 of the new Act applies to the unit on this basis:

its cost is the amount of expenditure you incurred on the unit; and

you must use the prime cost method; and

its opening adjustable value at 1 July 2001 is its undeducted cost at the end of 30 June 2001; and

you must use the same effective life you were using under Subdivision 46‑B of the former Act or that you would have used if you had used the software for the purpose of producing assessable income before 1 July 2001.

There are special rules for entities that have substituted accounting periods: see section 40‑65.