Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) Plant includes:
(a) articles, machinery, tools and rolling stock; and
(b) animals used as beasts of burden or working beasts in a * business, other than a * primary production business; and
(c) fences, dams and other structural improvements, other than those used for domestic or residential purposes, on land that is used for agricultural or pastoral operations; and
(d) structural improvements, other than a * forestry road or structural improvements used for domestic or residential purposes, on land used in a business involving:
(i) planting or tending trees in a plantation or forest that are intended to be felled; or
(ii) felling trees in a plantation or forest; or
(iii) transporting trees, or parts of trees, that you felled in a plantation or forest to the place where they are first to be milled or processed, or from which they are to be transported to the place where they are first to be milled or processed; and
(e) structural improvements, other than those used for domestic or residential purposes, that are used wholly for operations (carried out in the course of a business) relating directly to:
(i) taking or culturing pearls or pearl shell; or
(ii) taking or catching trochus, bêche - de - mer or green snails;
and that are situated at or near a port or harbour from which the business is conducted; and
(f) structural improvements that are excluded from paragraph (c), (d) or (e) because they are used for domestic or residential purposes if they are provided for the accommodation of employees, tenants or sharefarmers who are engaged in or in connection with the activities referred to in that paragraph.
(2) Plant also includes plumbing fixtures and fittings (including wall and floor tiles) provided by an entity mainly for:
(i) employees in a * business carried on by the entity for the * purpose of producing assessable income; or
(ii) employees in a business carried on for that purpose by a company that is a member of the same * wholly - owned group of which the entity is a member; or
(b) * children of any of those employees.
(3) The written down value of a * depreciating asset is its * cost less the sum of:
(a) the amounts you have deducted or can deduct for its decline in value; and
(b) if section 40 - 340 applied to your acquisition of it--the amounts the transferor, and earlier successive transferors, deducted or can deduct for its decline in value.
You can deduct an amount equal to the decline in value of a depreciating asset (an asset that has a limited effective life and that is reasonably expected to decline in value over the time it is used) that you hold.
That decline is generally measured by reference to the effective life of the asset.
You can also deduct amounts for certain other capital expenditure.
The rules that apply to most depreciating assets are in this Subdivision. It explains:
• what a depreciating asset is; and
• when you start deducting amounts for depreciating assets; and
• how to work out your deductions.
It also contains rules for splitting and merging depreciating assets.
Your cost of a depreciating asset is a component in working out the amounts you can deduct for it.
There are 2 elements of the cost of a depreciating asset. This Subdivision shows you how to work out those elements.
You may have to make an adjustment to your taxable income if you stop holding a depreciating asset.
The adjustment is generally based on the difference between the actual value of the asset when you stop holding it and its adjustable value.
Method statement
Step 1. Subtract the * car's * adjustable value just before the * balancing adjustment event occurred from the car's * termination value.
Step 2. Reduce the step 1 amount by the part of the * car's decline in value that is attributable to your using the car, or having it * installed ready for use, for purposes other than * taxable purposes. You do this by applying the formula in subsection 40 - 290(2).
Step 3. Multiply the step 2 amount by the total number of days for which you deducted the decline in value of the * car under this Division.
Step 4. Divide the step 3 amount by the total number of days you * held the * car.
Step 5. The step 4 amount is a deduction if it is negative or it is included in your assessable income if it is positive.
You may choose to work out the decline in value of low - cost assets (assets costing less than $1,000) and certain other depreciating assets through a low - value pool.
You may also choose to deduct amounts for expenditure you incur on in - house software through a software development pool.
Step 1. Work out the amount obtained by taking 18 3 / 4 % of the taxable use percentage of the * cost of each * low - cost asset you allocated to the pool for that year. Add those amounts.
Step 2. Add to the step 1 amount 18 3 / 4 % of the taxable use percentage of any amounts included in the second element of the * cost for that year of:
(a) assets allocated to the pool for an earlier income year; and
(b) * low - value assets allocated to the pool for the * current year.
Step 3. Add to the step 2 amount 37 1 / 2 % of the sum of:
(a) the * closing pool balance for the previous income year; and
(b) the taxable use percentage of the * opening adjustable values of * low - value assets, at the start of the income year, that you allocated to the pool for that year.
Step 4. The result is the decline in value of the * depreciating assets in the pool.
You can deduct amounts for capital expenditure on depreciating assets that are water facilities, horticultural plants, fodder storage assets or fencing assets.
The amount you can deduct is equal to the asset's decline in value during an income year (as measured under this Subdivision).
Method statement
Step 1. Work out the total of the amounts you could have deducted under this Subdivision for the * horticultural plant for the period:
(a) starting when the plant could first be used for * commercial horticulture; and
(b) ending when it was destroyed;
assuming that, during that period, you satisfied a condition in section 40 - 525 for the plant and used it for commercial horticulture.
Step 2. Subtract from the capital expenditure that is attributable to the establishment of the * horticultural plant:
(a) the result from step 1; and
(b) any amount you received (under an insurance policy or otherwise) for the destruction.
The remaining amount (if any) is your deduction under subsection (1).
You can deduct amounts for capital expenditure you incur:
• on landcare operations; or
• on electricity connections or telephone lines.
You get an immediate deduction for certain capital expenditure on:
• exploration or prospecting; and
• rehabilitation of mining or quarrying sites; and
• paying petroleum resource rent tax; and
• environmental protection activities.
You can deduct amounts for certain capital expenditure associated with projects you carry on. You deduct the amounts over the life of the project using a pool.
You can also deduct amounts for certain business related costs. You deduct these amounts over 5 years (or immediately in the case of some start - up expenses for small businesses) if the amounts are not otherwise taken into account and are not denied a deduction.
Method statement
Step 1. Work out the total of the amounts you could have deducted under this Subdivision in relation to the trees for the period:
(a) starting on the first day of the income year in which the trees are established; and
(b) ending when the trees were destroyed;
assuming that, during that period, you satisfied a condition in the table in subsection 40 - 1005(5).
Step 2. Subtract from the expenditure that is covered under section 40 - 1010 in relation to the trees:
(a) the result from step 1; and
(b) any amount you received (under an insurance policy or otherwise) for the destruction.
The remaining amount (if positive) is your deduction under subsection (1).
(a) you can deduct an amount for the decline in value for the asset for the relevant year under Subdivision 40 - B; and
(b) you make certain new investments in respect of the asset in the period starting on 13 December 2008 and ending on 31 December 2009; and
(c) the total of those new investments is at least $1000 (for small businesses) or $10,000 (for other businesses).
This Subdivision shows you how to calculate the amount of a deduction under section 43 - 10. The calculations must be made separately for each area that is identified as your area.
There are 2 separate calculation provisions: One for capital works begun before 27 February 1992; and the other for capital works begun after 26 February 1992.
The undeducted construction expenditure for your area is the part of your construction expenditure you have left to write off. It is used to work out:
• the number of years in which you can deduct amounts for your construction expenditure; and
• the amount that you can deduct under section 43 - 40 if your area or a part is destroyed.
You may deduct an amount for the undeducted construction expenditure for your area if your area or part of it is destroyed in the circumstances described in section 43 - 40.
This Subdivision shows you how to work out that deduction.
The calculations in this Subdivision are made separately for each part of the capital works that is identified as your area.
Method statement
Step 1. Calculate the amount (if any) by which the * undeducted construction expenditure for the part of * your area that was destroyed exceeds the amounts you have received or have a right to receive for the destruction of that part.
Step 2. Reduce the amount at Step 1 if one or more of these happened to that part of * your area:
(a) Step 2 or 4 in section 43 - 210, or Step 2 or 3 in section 43 - 215, applied to you or another person for it;
(b) you were, or another person was, not allowed a deduction for it under this Division;
(c) a deduction for it was not allowed or was reduced (for you or another person) under former Division 10C or 10D of Part III of the Income Tax Assessment Act 1936 .
The reduction under this step must be reasonable.
(a) the disposal of leased plant, or an interest in leased plant; or
(b) the disposal of a partnership interest in a partnership that leased plant; or
(c) the disposal of shares in a 100% subsidiary that leased plant;
where amounts have been deducted for the decline in value of the plant.
It includes amounts in assessable income. Any benefit received, and any reduction in a liability, is taken into account in calculating the amounts included.
Where the disposal of shares in a 100% subsidiary is involved, the companies in the former wholly - owned group may be made jointly and severally liable for tax that the former subsidiary does not pay.
50 - A Various exempt entities
50 - B Endorsing charitable entities as exempt from income tax
50 - 1 Entities whose ordinary income and statutory income is exempt
50 - 5 Charity, education and science
50 - 15 Employees and employers
50 - 40 Primary and secondary resources, and tourism
50 - 45 Sports, culture and recreation
50 - 47 Special condition for all items
50 - 50 Special conditions for item 1.1
50 - 52 Special condition for item 1.1
50 - 55 Special conditions for items 1.3, 1.4, 6.1 and 6.2
50 - 65 Special conditions for item 1.6
50 - 70 Special conditions for items 1.7, 2.1, 9.1 and 9.2
50 - 72 Special condition for item 4.1
50 - 75 Certain distributions may be made overseas