DI 5New investment asset deduction

1. For the income year in which an asset becomes a new investment asset, a person is allowed a deduction equal to the amount calculated by the following formula:

   $0.2\; \times \; (expenditure\; -\; contribution).$

   Where:

2. In the formula,—

3. expenditure is the amount of expenditure the person incurs in acquiring the asset, excluding expenditure to which this subpart does not apply (see section DI 2(2)):
4. contribution is the total amount of the following:
   1. capital contributions for the asset if section DB 64 (Capital contributions) applies:
   2. the payment amount that section DF 1(3) (Government grants to businesses) applies to, for the asset.

5. The person is allowed the deduction under this section despite section DF 1(2).

6. Subsection (1) overrides the capital limitation. The general permission must still be satisfied and the other general limitations still apply.