Income Tax Assessment Act 1997

Div 328 (heading) substituted by No 80 of 2007 , s 3 and Sch 3 item 1, applicable in relation to the 2007-08 income year and later income years. The heading formerly read:

Division 328 - STS taxpayers

Div 328 inserted by No 78 of 2001.

Subdiv 328-D (heading) substituted by No 80 of 2007 , s 3 and Sch 3 item 3, applicable in relation to the 2007-08 income year and later income years. The heading formerly read:

Subdivision 328-D - Capital allowances for STS taxpayers

Subdiv 328-D inserted by No 78 of 2001.

S 328-210(1) amended by No 92 of 2020, s 3 and Sch 7 item 21, by substituting note 2, effective 1 January 2021. Note 2 formerly read:

Note 2:

This threshold is $ 20,000, $ 25,000, $ 30,000 or $ 150,000 for income years ending on or after 12 May 2015 and on or before 31 December 2020: see subsection 328-180(6) of the Income Tax (Transitional Provisions) Act 1997 .

S 328-210(1) amended by No 61 of 2020, s 3 and Sch 4 item 16, by substituting " 31 December 2020 " for " 30 June 2020 " in note 2, effective 20 June 2020.

S 328-210(1) amended by No 22 of 2020, s 3 and Sch 1 item 11, by substituting " $ 25,000, $ 30,000 or $ 150,000 " for " $ 25,000 or $ 30,000 " in note 2, effective 25 March 2020.

S 328-210(1) amended by No 51 of 2019, s 3 and Sch 1 item 4, by substituting note 2, effective 1 July 2019. Note 2 formerly read:

Note 2:

This threshold is $ 20,000 for income years ending on or after 12 May 2015 and on or before 30 June 2019: see subsection 328-180(6) of the Income Tax (Transitional Provisions) Act 1997 .

S 328-210(1) amended by No 109 of 2018, s 3 and Sch 1 item 4, by substituting " 30 June 2019 " for " 30 June 2018 " in note 2, effective 1 October 2018.

S 328-210(1) amended by No 56 of 2017, s 3 and Sch 1 item 4, by substituting " before 30 June 2018 " for " before 30 June 2017 " in note 2, effective 1 July 2017.

S 328-210(1) amended by No 67 of 2015, s 3 and Sch 1 items 4 and 5, by substituting " Note 1 " for " Note " and inserting note 2, effective 22 June 2015.

S 328-210(1) amended by No 96 of 2014, s 3 and Sch 3 item 5, by substituting " $ 1,000 " for " $ 6,500 " , effective 30 September 2014. For application provision see note under s 328-180(1) .

S 328-210(1) amended by No 23 of 2012, s 3 and Sch 2 item 70, by substituting " $ 6,500 " for " $ 5,000 " , applicable in relation to the 2012-13 income year and later income years.

S 328-210(1) amended by No 23 of 2012, s 3 and Sch 2 items 40 - 41, by omitting " or * long life small business pool " after " a * general small business pool " and substituting " $ 5,000 " for " $ 1,000 " , applicable in relation to the 2012-13 income year and later income years.

S 328-210(1) amended by No 80 of 2007 , s 3 and Sch 3 item 46, by substituting " small business " for " STS " (wherever occurring), applicable in relation to the 2007-08 income year and later income years.

S 328-210(2) amended by No 23 of 2012, s 3 and Sch 2 item 42, by substituting " the pool " for " that pool " (wherever occurring), applicable in relation to the 2012-13 income year and later income years.

S 328-210(3) amended by No 96 of 2014, s 3 and Sch 3 item 6, by substituting the example, effective 30 September 2014. For application provision see note under s 328-180(1) . The example formerly read:

Example:

Amanda ' s Graphics is a small business entity for the 2012-13 income year and chooses to use this Subdivision for that year. The business has an opening pool balance of $ 7,000 for its general small business pool for that year.

During that year, Amanda acquired a new computer for $ 8,000. The taxable purpose proportion of its adjustable value is:

$ 8,000 × 85% business use estimate = $ 6,800

Amanda also sold her business car for $ 9,600 during that year. The car was used 100% in the business.

To work out whether she can deduct an amount under this section, Amanda uses this calculation:

$ 7,000 + $ 6,800 − $ 9,600 = $ 4,200

Because the result is less than $ 6,500, Amanda can deduct the $ 4,200 for the income year. The pool ' s closing balance for the year is zero.

S 328-210(3) amended by No 23 of 2012, s 3 and Sch 2 item 71, by substituting " $ 6,500 " for " $ 5,000 " in the example, applicable in relation to the 2012-13 income year and later income years.

S 328-210(3) amended by No 23 of 2012, s 3 and Sch 2 item 43, by substituting the example at the end, applicable in relation to the 2012-13 income year and later income years. The example formerly read:

Example:

Amanda ' s Graphics is a small business entity for the 2008-09 income year and chooses to use this Subdivision for that year. The business has an opening pool balance of $ 1,200 for its general small business pool for that year.

During that year, Amanda acquired a new computer for $ 2,000. The taxable purpose proportion of its adjustable value is:

$ 2,000 × 80% business use estimate = $ 1,600

Amanda also sold her business car for $ 1,900 during that year. The car was used 100% in the business.

To work out whether she can deduct an amount under this section, Amanda uses this calculation:

$ 1,200 + $ 1,600 = $ 2,800 − $ 1,900 = $ 900

Because the result is less than $ 1,000, Amanda can deduct the $ 900 for the income year. The pool ' s closing balance for the year is zero.

S 328-210(3) (example) amended by No 80 of 2007 , s 3 and Sch 3 item 47, by substituting " Amanda ' s Graphics is a small business entity for the 2008-09 income year and chooses to use this Subdivision for that year. The business has an opening pool balance of $ 1,200 for its general small business pool for that year. " for " Amanda ' s Graphics, an STS taxpayer, has an opening pool balance of $ 1,200 for its general STS pool for the 2004-05 income year. " , applicable in relation to the 2007-08 income year and later income years.

S 328-210 inserted by No 78 of 2001.