Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) For the purposes of Division 40 of the Income Tax Assessment Act 1997 , the decline in value of a depreciating asset for an income year is the amount worked out under section 40 - 130 if:
(a) the income year is the year in which you start to use the asset, or have it installed ready for use, for a taxable purpose; and
(b) subsection (2) (about businesses with turnover less than $500 million) applies to you for the year and for the income year in which you started to hold the asset (if that was an earlier year); and
(c) you are covered by section 40 - 125 for the asset; and
(d) you have not made a choice under section 40 - 137 in relation to the income year.
Note 1: An effect of paragraph (1)(a) is that this Subdivision only applies to one income year per asset. See also subsection 40 - 135(1).
Note 2: This subsection does not apply if Subdivision 40 - BB of this Act applies: see section 40 - 145 of this Act.
Businesses with turnover less than $500 million
(2) This subsection applies to you for an income year if you:
(a) are a small business entity; or
(b) would be a small business entity if:
(i) each reference in Subdivision 328 - C of the Income Tax Assessment Act 1997 (about what is a small business entity) to $10 million were instead a reference to $500 million; and
(ii) the reference in paragraph 328 - 110(5)(b) of that Act to a small business entity were instead a reference to an entity covered by this subsection.
Exception--assets for which the decline in value is worked out under section 40 - 82 or Subdivision 40 - E or 40 - F of the Income Tax Assessment Act 1997
(3) However, this section does not apply to a depreciating asset for an income year if you work out the decline in value of the asset for the income year under any of the following:
(a) section 40 - 82 of the Income Tax Assessment Act 1997 ;
(b) Subdivision 40 - E or 40 - F of that Act .