Commonwealth Consolidated Acts

INCOME TAX (TRANSITIONAL PROVISIONS) ACT 1997 - SECT 40.50

  (1)   This section applies to you if:

  (a)   you have deducted or can deduct an amount under Subdivision   387 - G of the former Act for an amount (the qualifying amount ) of expenditure on a forestry road or timber mill building or could have deducted an amount under that Subdivision if you had used the road or building for the purpose of producing assessable income; and

  (b)   you hold the road or building at the end of 30   June 2001.

  (2)   Division   40 of the new Act applies to the asset on this basis:

  (a)   it has an opening adjustable value at 1   July 2001 equal to the qualifying amount less any amounts you have deducted or can deduct for it under the former Act; and

  (b)   in applying the formula in section   40 - 75 of the new Act for your income year in which 1   July 2001 occurs--you use the adjustments in subsection   40 - 75(3) of the new Act; and

  (c)   its cost is the qualifying amount; and

  (d)   it has an effective life equal to the remaining life you last estimated for it under the former Act; and

  (e)   you can recalculate its effective life if you conclude that your estimate is no longer accurate (except that the effective life cannot exceed 25 years); and

  (f)   you must use the prime cost method.

Note:   There are special rules for entities that have substituted accounting periods: see section   40 - 65.