The announcement will affect taxpayers where:
- the tax consolidated group either formed or had an entity join after 10 May 2006
- a significant amount of Division 40 assets were brought into the consolidated group
- the assets were being depreciated using the diminishing value method by the joining entity prior to joining
- the taxpayer anticipated a change of law and used the 150 percent diminishing value method.
In a fact pattern such as this, there may be an opportunity to amend prior year returns to claim the higher 200 percent diminishing value rate. The usual four year statutory time limit may also potentially be extended. If you have significant depreciating assets, this opportunity may be worth looking into.