Commonwealth Consolidated Acts

[Index] [Table] [Search] [Search this Act] [Notes] [Noteup] [Previous] [Next] [Download] [Help]


Forestry roads and timber mill buildings

             (1)  This section applies to you if:

                     (a)  you have deducted or can deduct an amount under Subdivision 387-G of the former Act for an amount (the qualifying amount ) of expenditure on a forestry road or timber mill building or could have deducted an amount under that Subdivision if you had used the road or building for the purpose of producing assessable income; and

                     (b)  you hold the road or building at the end of 30 June 2001.

             (2)  Division 40 of the new Act applies to the asset on this basis:

                     (a)  it has an opening adjustable value at 1 July 2001 equal to the qualifying amount less any amounts you have deducted or can deduct for it under the former Act; and

                     (b)  in applying the formula in section 40-75 of the new Act for your income year in which 1 July 2001 occurs--you use the adjustments in subsection 40-75(3) of the new Act; and

                     (c)  its cost is the qualifying amount; and

                     (d)  it has an effective life equal to the remaining life you last estimated for it under the former Act; and

                     (e)  you can recalculate its effective life if you conclude that your estimate is no longer accurate (except that the effective life cannot exceed 25 years); and

                      (f)  you must use the prime cost method.

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

AustLII: Copyright Policy | Disclaimers | Privacy Policy | Feedback