Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) Subject to subsection (1A), if:
(a) the accounts of the FIF in respect of the relevant period include an amount in respect of the amortisation of the expenditure incurred in the acquisition of:
(i) a depreciating asset within the meaning of Division 40 of the Income Tax Assessment Act 1997 ; or
(ii) industrial property within the meaning of Division 10B of Part III of this Act; or
(iii) any other prescribed class of property; and
(b) the amortisation is based on the effective life of the depreciating asset or industrial or other property; and
(c) the accounts were prepared in accordance with generally accepted accounting principles and give a true and fair view of the financial position of the FIF;
the amount so included is, subject to section 574, a notional deduction from the notional income of the FIF of the relevant period.
(1A) If:
(a) the accounts of the FIF in respect of one or more accounting periods include an amount in respect of the amortisation of the expenditure incurred in the acquisition of a class of property prescribed for the purposes of subparagraph (1)(a)(iii); and
(b) the regulations prescribing the class also prescribe a percentage as the annual amortisation percentage in relation to the class, or a category of property included in the class;
then subsection (1) must be applied, in relation to each notional accounting period that is appropriate, as if the accounts had amortised the expenditure in relation to the class or the category on the basis of the prescribed annual amortisation percentage.
(2) Except as provided in subsection (1), no amount in respect of the amortisation of expenditure in the acquisition of any property is a notional deduction from the notional income of the FIF of the relevant period.