Tax Laws Amendment (Small Business) Act 2007 (80 of 2007)

Schedule 3   STS taxpayers

Part 1   Main amendments

Income Tax Assessment Act 1997

48   Section 328-220

Repeal the section, substitute:

328-220 What happens if you are not a small business entity or do not choose to use this Subdivision for an income year

(1) If you are not a *small business entity for an income year or you do not choose to use this Subdivision for that year, this Subdivision continues to apply to your *general small business pool and *long life small business pool for that year and later income years.

(2) However, *depreciating assets you started to use, or have *installed ready for use, for a *taxable purpose during an income year for which you are not a *small business entity or do not choose to use this Subdivision cannot be allocated to a pool under this Subdivision until an income year for which you are a small business entity and you choose to use this Subdivision.

(3) This section applies to a transferee referred to in subsection 328-243(1) or (1A) who:

(a) was not a *small business entity for the income year in which the relevant *balancing adjustment events occurred; or

(b) did not choose to use this Subdivision for that year;

as if the transferee had been a small business entity for an earlier income year and had chosen to use this Subdivision for the earlier year. This rule applies even if roll-over relief is not chosen.