Commonwealth Consolidated Acts

INCOME TAX ASSESSMENT ACT 1997 - SECT 41.10

  (1)   You can deduct an amount for an income year in relation to an asset if:

  (a)   the asset is a * depreciating asset, other than an intangible asset; and

  (b)   you can deduct an amount under section   40 - 25 in relation to the asset for the income year; and

  (c)   the income year is the 2008 - 09, 2009 - 10, 2010 - 11 or 2011 - 12 income year; and

  (d)   the total of the * recognised new investment amounts for the income year in relation to the asset equals or exceeds the * new investment threshold for the income year in relation to the asset.

  (2)   Subsection   355 - 715(2) (tax offset for assets used for R&D activities) does not apply to a deduction under subsection   (1).

  (3)   For the purposes of paragraph   (1)(b), in determining whether you can deduct the amount in relation to the asset under section   40 - 25 for the income year:

  (aa)   disregard section   40 - 90 (reduction in cost where debt is forgiven); and

  (ab)   disregard subsection   40 - 365(5) (reduction in cost for replacement asset where involuntary disposal); and

  (b)   disregard Subdivision   328 - D (capital allowances for small business entities); and

  (c)   disregard subsection   355 - 715(2) (tax offset for assets used for R&D activities).

Counting additional recognised new investment amounts for the purposes of meeting the threshold

  (4)   For the purposes of paragraph   (1)(d), treat each of the following as a * recognised new investment amount for the income year in relation to the asset (the relevant asset ):

  (a)   a recognised new investment amount for a previous income year in relation to the relevant asset;

  (b)   a recognised new investment amount for the income year or a previous income year in relation to another asset, if:

  (i)   the other asset is part of a set of assets including the relevant asset; or

  (ii)   the other asset is identical, or substantially identical, to the relevant asset;

  (c)   a recognised new investment amount for the income year or a previous income year in relation to an asset * held by another entity, if:

  (i)   subsection   40 - 35(1) (jointly held depreciating assets) applies in relation to the relevant asset because it is your interest in an asset (the underlying asset ); and

  (ii)   the asset held by the other entity is the other entity's interest in the underlying asset.