Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) This section applies to you if you have deducted or can deduct an amount under Subdivision 400 - A of the former Act for an amount (the qualifying amount ) of expenditure on or before 30 June 2001 on evaluating the impact on the environment of a project under Subdivision 400 - A of the former Act.
(2) Division 40 of the new Act applies to the qualifying amount as if it were a depreciating 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 or the Income Tax Assessment Act 1936 ; and
(b) it has a cost equal to the qualifying amount; and
(c) it has an effective life equal to the number of years for which you could deduct for the qualifying amount worked out under subsection 400 - 15(3) of the former Act; and
(d) you must use the prime cost method.
Note: There are special rules for entities that have substituted
accounting periods: see section 40 - 65.