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Income Tax Assessment Act 1997

CHAPTER 2 - LIABILITY RULES OF GENERAL APPLICATION  

PART 2-10 - CAPITAL ALLOWANCES: RULES ABOUT DEDUCTIBILITY OF CAPITAL EXPENDITURE  

Division 40 - Capital allowances    View history reference

Subdivision 40-I - Capital expenditure that is deductible over time    View history reference

Operative provisions

SECTION 40-830  Project pools  

 View history reference [330-80; 330-100; 330-105; 330-370; 330-395; 400-15]

40-830(1)  

You can allocate * project amounts to a project pool.

40-830(2)  

You can deduct amounts for * project amounts that are allocated to the project pool.

40-830(3)  

You calculate your deduction for an income year for a project pool in this way:
  Pool value × 150%  
DV project pool life

where:

DV project pool life is:


(a) the * project life of the project; or


(b) if its project life has been recalculated - its most recently recalculated project life.

pool value is:


(a) for the first income year that a * project amount is allocated to the pool - the sum of the project amounts allocated to the pool for that year; or


(b) for a later income year - the sum of the pool ' s * closing pool value for the previous income year and any project amounts allocated to the pool for the later year.

Note:

The calculation is made under subsection 40-832(3) for project amounts incurred on or after 10 May 2006 for projects that start to operate on or after that day.

40-830(4)  

If, in an income year, you abandon, sell or otherwise dispose of a project for which you have a project pool, you can deduct for that year the sum of the pool ' s * closing pool value for the previous income year and any * project amounts allocated to the pool for the income year.

40-830(5)  

Your assessable income for that income year includes any amount you receive for the abandonment, sale or other disposal.

40-830(6)  

 View history reference
Your assessable income for an income year includes other capital amounts that you *derive in that year in relation to a * project amount allocated to your project pool or in relation to something on which the project amount is expended.

40-830(7)  

The closing pool value of a project pool for an income year is:


(a) for the first income year that a * project amount is allocated to the pool - the sum of the project amounts allocated to the pool for that year less the amount you could deduct for the pool for that year (apart from section 40-835 ); or


(b) for a later income year - the sum of the pool ' s * closing pool value for the previous income year and any project amounts allocated to the pool for the later year less the amount you could deduct for the pool for the later year (apart from section 40-835 ).

40-830(8)  

Your deduction for an income year cannot be more than the amount of the component " pool value " in the formula in subsection (3) for that year.


 



This information is provided by CCH Australia Limited. View the disclaimer and notice of copyright.
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