(1) This section applies to an entity if:
(a) the entity can deduct amounts for a * depreciating asset under Division 40 or 328; and
(b) the entity has an * increasing adjustment in an income year that relates directly or indirectly to the asset.
(1A) However, this section does not apply to an * increasing adjustment that arises under Division 129 or 132 of the * GST Act.
Note: See instead section 27-92.
(2) The asset's * cost is increased by an amount equal to the * increasing adjustment if the adjustment arises in the income year in which the asset's * start time occurs.
(3) The asset's * opening adjustable value for an income year and its * cost is increased by an amount equal to the * increasing adjustment if the adjustment arises in that year and that year is after the one in which the asset's * start time occurs.
(4) This section does not apply to:
(a) a depreciating asset allocated to a low-value pool or a pool under Division 328 for or in the * current year; or
(b) * in-house software if expenditure on the software is allocated to a software development pool for the current year; or
(c) a project pool.