Commonwealth of Australia Consolidated Acts Commonwealth of Australia Consolidated Acts(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:
"base value" has the same meaning as in subsection 40-70(1).
"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.
Exception: intangibles
(2) You cannot use the * diminishing value method to work out the decline in value of:
(a) * in-house software; or
(b) an item of * intellectual property (except copyright in a * film); or
(c) a * spectrum licence; or
(d) a * datacasting transmitter licence; or
(e) a * telecommunications site access right.
Limit on decline
(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 in the formula in subsection (1) for that income year.