Commonwealth Consolidated Acts

INCOME TAX (TRANSITIONAL PROVISIONS) ACT 1997 - SECT 40.515

  (1)   This section applies to you if you have deducted or can deduct an amount under Division   387 of the former Act for an amount (the qualifying amount ) of expenditure on any of these (the primary production asset ):

  (a)   the construction, manufacture, installation or acquisition of a water facility; or

  (b)   the establishment of horticultural plants; or

  (c)   the establishment of grapevines;

and you would have been able to deduct amounts for the qualifying amount for the income year in which 1   July 2001 occurs under the former Act if it had continued to apply.

  (2)   Subdivision   40 - F of the new Act applies to the primary production asset on this basis:

  (a)   the qualifying amount is taken to be:

  (i)   for a water facility--the amount of capital expenditure you incurred on the construction, manufacture, installation or acquisition of the water facility; or

  (ii)   for a horticultural plant or a grapevine--the amount of capital expenditure incurred that is attributable to the establishment of the plant or grapevine; and

  (b)   for horticultural plants, you use the effective life determined under section   387 - 175 of the former Act; and

  (c)   amounts that have been deducted or can be deducted for the qualifying amount under the former Act or the Income Tax Assessment Act 1936 are taken to be a decline in value under Subdivision   40 - F of the new Act.