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INCOME TAX ASSESSMENT ACT 1997 - SECT 40.830

Project pools

  (1)   You can allocate * project amounts to a project pool.

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

  (3)   You calculate your deduction for an income year for a project pool in this way:

Start formula start fraction Pool value times 150% over DV project pool life end fraction end formula

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.

  (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.

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

  (6)   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.

  (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).

  (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.


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