Income Tax Assessment Act 1997
Note: A Commissioner ' s Remedial Power (CRP 2017/2) is relevant to this part of the tax law. Taxation Administration (Remedial Power - Small Business Restructure Roll-over) Determination 2017 (F2017L01687) modifies the operation of s 40-340 of the Income Tax Assessment Act 1997 and any other provisions of a taxation law whose operation is affected by the modified operation of s 40-340 in relation to an asset transferred under a small business restructure roll-over (item 8 of the table in s 40-340(1) ).
The operation of the relevant provisions is modified as follows:
If s 40-340 of ITAA 1997 provides for rollover relief in relation to a disposal of a depreciating asset because the condition in item 8 of the table in s 40-340(1) of ITAA 1997 is satisfied in relation to the asset, that section has effect as if it also provided that the disposal of the asset has no direct consequences under the income tax law (other than Div 40 of ITAA 1997).
The modification applies in respect of transfers on or after 8 May 2018.
An entity must treat a modification as not applying to it or any other entity if the modification would produce a less favourable result for it. The Commissioner is empowered by s 370-5 of Sch 1 to the Taxation Administration Act 1953 to make modifications, by legislative instrument, to ensure the law is administered to achieve its intended purpose or object.
The first element of the cost of a * car designed mainly for carrying passengers (after applying section 40-225 and Subdivision 27-B ) is reduced to the * car limit for the * financial year in which you started to * hold it if its cost exceeds that limit.
However, the * car limit does not apply to a * car:
(a) fitted out for transporting disabled people in wheelchairs for profit; or
(b) whose first element of * cost exceeds that limit only because of modifications made to enable an individual with a disability to use it for a * taxable purpose. 40-230(3)
The car limit for the 2000-01 * financial year is $55,134. The limit is indexed annually.
Subdivision 960-M shows you how to index amounts.40-230(4)
If you * hold a * car that is also held by one or more other entities, subsection (1) applies to the * cost of the car despite section 40-35 . Then section 40-35 applies to the cost of the car as reduced under subsection (1).