Income Tax Assessment Act 1997
SECTION 40-230 Adjustment: car limit 40-230(1)
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.
40-230(2)
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.
Note:
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).
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