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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 41 - Additional deduction for certain new business investment    View history reference

Operative provisions  

SECTION 41-20  Recognised new investment amount  

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41-20(1)  

An amount is a recognised new investment amount for the income year in relation to the asset if:


(a) either:


(i) the amount is included in the first element of the asset's *cost (worked out in accordance with Subdivision 40-C); or

(ii) the amount is included in the second element of the asset's cost under paragraph 40-190(2)(a); and


(b) the *investment commitment time for the amount occurs in the period:


(i) starting at 12.01 am, by legal time in the Australian Capital Territory, on 13 December 2008; and

(ii) ending on 31 December 2009; and


(c) the *first use time for the amount occurs:


(i) no later than the end of the income year; and

(ii) no later than 31 December 2010; and


(d) at the first use time for the amount, it is reasonable to conclude that you will use the asset principally in Australia for the principal purpose of carrying on a *business; and
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(e) if the amount is included in the first element of the asset's cost - the first use time for the amount is the first time you or any other entity have used the asset, or have it installed ready for use, for any purpose; and


(f) you have not been entitled to a deduction under this Division for any previous income year in relation to the amount.

41-20(2)  

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Treat the requirements in paragraph (1)(d) as not being met if, at the first use time for the amount, it is reasonable to conclude that the asset will never be located in Australia.

41-20(3)  

For the purposes of paragraph (1)(e), disregard any previous use of the asset that was merely for the purposes of reasonable testing or trialling.

41-20(4)  

Treat the requirements in paragraph (1)(e) as not being met if the amount becomes included in the first element of the asset's *cost at a time because of paragraph 40-205(a) (splitting depreciating assets) or 40-210(a) (merging depreciating assets).

41-20(5)  

In determining the amount of a *recognised new investment amount, disregard:


(a) subsection 40-90(2) (reduction in cost where debt is forgiven); and


(b) paragraph 40-365(5)(a) (reduction in cost for replacement asset where involuntary disposal).


 



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