Election to depreciate plant and equipment at old rates
2006 amendment clarifies the rules covering the election to continue to depreciate plant and equipment at the old depreciation rates.
Section EE 26B of the Income Tax Act 2004
The rules covering the election to continue to depreciate plant and equipment at the old depreciation rates have been clarified for plant and equipment that has its depreciation rate set under a method other than section EE 25B.
Section EE 26B allows taxpayers to elect not to apply the new depreciation rates to plant and equipment acquired on or after 1 April 2005 and before the beginning of the 2006-07 income year. There was some uncertainty about whether section EE 26B applies to types of plant and equipment when the depreciation rate is not calculated under the new double declining balance method. The legislation has been amended to remove any uncertainty. This change applies for the 2005-06 and later income years.
Other sections in this legislation
| Offshore investment | Tax rules for PIEs | Tax on geothermal wells | Australian superannuation fund exemption | New rules for selecting SSCWT rates | Allowing documents to be removed for inspection | Military and police allowances | New rules for spreading income on the sale of patents | Organisations approved for charitable donee status | Consolidated groups and foreign losses | Assessments by the Commissioner | GST and financial services | GST on fringe benefits | GST grouping rules | Taxation of business environmental expenditure | Family assistance provisions | Rewrite amendments | Tax depreciation treatment of patents | Fringe benefit tax | Depreciation formula | Economic rate of depreciation | Calculating depreciation rates | Election to depreciate | Transitional residents | Death and asset transfers | New GST due date | Limit on refunds and allocations of tax | The imputation system and companies | Reverse takeovers | Changes in GST taxable periods | Miscellaneous technical amendments |