Income tax: is depreciation allowable under subsection 54(1) of the Income Tax Assessment Act 1936 if income producing operations in a business have not yet commenced?

Taxation Determination TD 95/52, which issued on 20 September 1995, considers whether depreciation is allowable under subsection 54(1) of the Income Tax Assessment Act 1936 (ITAA 1936) for plant acquired for use in a business that has not yet commenced to be carried on.

The depreciation provisions in section 54 of the ITAA 1936 were rewritten in 1997 as part of the Tax Law Improvement Project and replaced by Division 42 of the Income tax Assessment Act 1997 (ITAA 1997). From 1 July 2001, Division 42 was replaced by Division 40 of the ITAA 1997.

As Taxation Determination TD 95/52 is no longer current, it is accordingly withdrawn and has been replaced by Taxation Determination TD 2007/5.