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Income Tax Act 2007

Deductions - New investment assets

DI 4: Meaning of new investment asset

You could also call this:

"What is a new investment asset, like a building or land that loses value over time?"

Illustration for Income Tax Act 2007

When you acquire and own an asset, it is called a new investment asset if it is something that loses value over time, like some commercial buildings. You can also have a new investment asset if you make improvements to farm land, plant certain horticultural plants, improve your aquacultural business, or improve forestry land, and you are allowed a deduction under section DO 4, section DO 5, section DO 12, or section DP 3. You can have a new investment asset if you acquire it with money spent on petroleum or mining development.

If you acquire an asset with money spent on petroleum or mining development, or if you improve an asset that loses value over time, it is a new investment asset. However, some assets are not considered new investment assets, such as your home, or special rights to mine or drill for oil. These exceptions apply even if you are allowed a deduction for them under other sections of the law.

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Topics:
Money and consumer rights > Taxes
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DI 3: Meaning of new asset transferee, or

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DI 5: New investment asset deduction, or

"You can get a discount on your taxes when you buy a new asset for your business or investment."

Part DDeductions
New investment assets

DI 4Meaning of new investment asset

  1. New investment asset—

  2. means, for a person, an asset they acquire and own if the asset is—
    1. depreciable property for which the person has a depreciation loss, including a zero amount of depreciation loss (for example, some commercial buildings):
      1. an improvement for which the person is allowed a deduction under section DO 4 (Improvements to farm land):
        1. a planting for which the person is allowed a deduction under section DO 5 (Expenditure on land: planting of listed horticultural plants):
          1. an improvement for which the person is allowed a deduction under section DO 12 (Improvements to aquacultural business):
            1. an improvement for which the person is allowed a deduction under section DP 3 (Improvements to forestry land):
              1. an asset that is acquired with petroleum development expenditure:
                1. an asset that is acquired with mining development expenditure:
                  1. an improvement to an asset of the type in subparagraph (i):
                  2. does not include an asset if and to the extent to which it is—
                    1. a dwelling:
                      1. fixed life intangible property:
                        1. a petroleum privilege or a petroleum permit:
                          1. a mining right or a mining permit.

                          Notes
                          • Section DI 4: inserted (with effect on 22 May 2025), on , by section 5 of the Taxation (Budget Measures) Act 2025 (2025 No 26).