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INCOME TAX (TRANSITIONAL PROVISIONS) ACT 1997 - SECT 40.25

Software

  (1)   Despite its repeal by this Act, Division   46 of the former Act continues to apply to expenditure on software that you incurred and that was in a software pool under that Division at the end of 30   June 2001.

  (2)   For a unit of software for which you were deducting amounts under Subdivision   46 - B of the former Act or for which you could have deducted amounts under that Subdivision if you had used the software for the purpose of producing assessable income before 1   July 2001, Division   40 of the new Act applies to the unit on this basis:

  (a)   its cost is the amount of expenditure you incurred on the unit; and

  (b)   you must use the prime cost method; and

  (c)   its opening adjustable value at 1   July 2001 is its undeducted cost at the end of 30   June 2001; and

  (d)   you must use the same effective life you were using under Subdivision   46 - B of the former Act or that you would have used if you had used the software for the purpose of producing assessable income before 1   July 2001.

Note:   There are special rules for entities that have substituted accounting periods: see section   40 - 65.


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