Commonwealth Numbered Acts

NEW BUSINESS TAX SYSTEM (CAPITAL ALLOWANCES) ACT 2001 NO. 76, 2001 - SCHEDULE 3

Income Tax Assessment Act 1997

1 At the end of section 42-25

Exception: plant acquired from associate

(4) For ^* plant that you acquire from an ^* associate of yours where the associate has deducted or can deduct an amount for the plant under this Division, you must use the same method the associate was using.

Exception: owner changes but user same or associate of former user

(5) For ^* plant that you acquire from a former owner or ^* quasi-owner of the plant, you must use the same method that the former owner or quasi-owner was using for the plant if:

(a)

the former owner or quasi-owner or another entity (each of which is the former user ) was using the plant at a time before you became its owner or quasi-owner; and

(b)

while you are the owner or quasi-owner of the plant, the former user or an ^* associate of the former user uses the plant.

(6) However, you must use the ^* diminishing value method if:

(a)

you do not know, and cannot readily find out, which method the former owner or ^* quasi-owner was using; or

(b)

the former owner or quasi-owner did not use a method.

2 At the end of section 42-100

Exception: plant acquired from associate

(4) For ^* plant that you acquire from an ^* associate of yours where the associate has deducted or can deduct an amount for the plant under this Division, you must use:

(a)

if the associate was using the ^* diminishing value method—the ^* effective life that the associate was using; or

(b)

if the associate was using the ^* prime cost method—an effective life equal to any period of the asset's effective life the associate was using that is yet to elapse at the time of acquisition.

Exception: owner changes but user same or associate of former user

(5) For ^* plant that you acquire from a former owner or ^* quasi-owner of the plant where:

(a)

the former owner or quasi-owner or another entity (each of which is the former user ) was using the plant at a time before you became its owner or quasi-owner; and

(b)

while you are the owner or quasi-owner of the plant, the former user or an ^* associate of the former user uses the plant;