Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) You work out the decline in value of a * depreciating asset for an income year using the diminishing value method in this way if you started to * hold the asset on or after 10 May 2006:
where:
"days held" has the same meaning as in subsection 40 - 70(1).
Note: If you recalculate the effective life of a depreciating asset, you use that recalculated life in working out your deduction.
You can choose to recalculate effective life because of changed circumstances: see section 40 - 110. That section also requires you to recalculate effective life in some cases.
Exception: intangibles
(2) You cannot use the * diminishing value method to work out the decline in value of:
(a) * in - house software; or
(b) an item of * intellectual property (except copyright in a * film); or
(c) a * spectrum licence; or
(e) a * telecommunications site access right.
Limit on decline
(3) The decline in value of a * depreciating asset under this section for an income year cannot be more than the amount that is the asset's * base value for that income year.