Commonwealth Consolidated Acts

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INCOME TAX ASSESSMENT ACT 1936 - SECT 159GM

Special provision where cost of plant etc. is also eligible capital expenditure

                   Where:

                     (a)  at a particular time (in this section referred to as the relevant time ) an item of eligible property is both eligible depreciation property and eligible capital expenditure property; and

                     (b)  the expenditure by reason of which the item of property is eligible capital expenditure property is the amount that:

                              (i)  was the cost of the item of property to the taxpayer who incurred the expenditure for the purpose of the former Subdivision 42-B, or Subdivision 40-C, of the Income Tax Assessment Act 1997 ; or

                             (ii)  would have been the cost to the taxpayer for the purpose of that Subdivision if it applied in relation to the item of property;

for the purpose of ascertaining the residual amount at the relevant time in relation to the amount of expenditure:

                     (c)  if a capital expenditure deduction would, apart from this Division, be allowable to a taxpayer in respect of the amount of eligible capital expenditure in relation to the year of income in which the relevant time occurs--the item of eligible property shall be taken to be at the relevant time an item of eligible capital expenditure property and not an item of eligible depreciation property; and

                     (d)  in any other case--the item of eligible property shall be taken to be at the relevant time an item of eligible depreciation property and not an item of eligible capital expenditure property.



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