INCOME TAX ASSESSMENT ACT 1997 - SECT 40.72 Diminishing value method for post - 9 May 2006 assets
INCOME TAX ASSESSMENT ACT 1997 - SECT 40.72
Diminishing value method for post - 9 May 2006 assets(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.
(2) You cannot use the * diminishing value method to work out the decline in value of:
(b) an item of * intellectual property (except copyright in a * film); or
(c) a * spectrum licence; or
(e) a * telecommunications site access right.
(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.