Commonwealth Consolidated Acts

INCOME TAX ASSESSMENT ACT 1997 - SECT 328.180

  (1)   You deduct the * taxable purpose proportion of the * adjustable value of a * depreciating asset for the income year in which you start to use the asset, or have it * installed ready for use, for a * taxable purpose if:

  (a)   you were a * small business entity for that year and the year in which you started to * hold it; and

  (ab)   you chose to use this Subdivision for each of those years; and

  (b)   the asset is a depreciating asset whose * cost as at the end of the income year in which you start to use it, or have it installed ready for use, for a taxable purpose is less than $1,000.

Note:   This threshold may be affected by section   328 - 180 (about temporary increased access to accelerated depreciation) or 328 - 181 (about temporary full expensing) of the Income Tax (Transitional Provisions) Act 1997 .

  (2)   You can also deduct, for an income year for which you are a * small business entity and you choose to use this Subdivision, the * taxable purpose proportion of an amount included in the second element of the * cost of an asset for which you have deducted an amount under subsection   (1) if:

  (a)   the amount so included is less than $1,000; and

Note:   This threshold may be affected by section   328 - 180 (about temporary increased access to accelerated depreciation) or 328 - 181 (about temporary full expensing) of the Income Tax (Transitional Provisions) Act 1997 .

  (b)   you started to use the asset, or have it * installed ready for use, for a * taxable purpose during an earlier income year.

Note:   Paragraph   (b) may not apply for costs included after 31   December 2020 for assets you first acquire between 12   May 2015 and 31   December 2020: see subsection   328 - 180(5A) of the Income Tax (Transitional Provisions) Act 1997 .

  (3)   An asset for which you have deducted an amount under this section is allocated to your * general small business pool if:

  (a)   an amount of $1,000 or more is included in the second element of the asset's * cost; or

Note:   This threshold may be affected by section   328 - 180 (about temporary increased access to accelerated depreciation) or 328 - 181 (about temporary full expensing) of the Income Tax (Transitional Provisions) Act 1997 .

  (b)   any amount is included in the second element of the asset's cost and you have deducted or can deduct an amount under subsection   (2) for an amount previously included in the second element of the asset's cost.

  (4)   This Division applies to the asset as if its * adjustable value were the amount included in the second element of its * cost as mentioned in subsection   (3).

  (5)   Subsection   (3) applies even if the amount is included in the second element of the asset's * cost during an income year for which you are not a * small business entity or do not choose to use this Subdivision.