Income Tax Assessment Act 1997

CHAPTER 2 - LIABILITY RULES OF GENERAL APPLICATION

PART 2-10 - CAPITAL ALLOWANCES: RULES ABOUT DEDUCTIBILITY OF CAPITAL EXPENDITURE

Division 40 - Capital allowances

Commissioner ' s Remedial Power

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.

Subdivision 40-C - Cost

View history reference

View history note

Operative provisions

SECTION 40-215

40-215 Adjustment: double deduction

View history reference

Each element of the ^* cost of a ^* depreciating asset is reduced by any portion of that element of cost that you have deducted or can deduct, or that has been or will be taken into account in working out an amount you can deduct, other than under this Division, Division 41 or Division 328 .

Note:

This section does not apply to notional deductions under section 355-305 or 355-520 (about R & D) because those provisions are about deducting the asset ' s decline in value, not its cost.

View history note

40-215(2)
(Repealed by No 93 of 2011)

View history note

History

S 40-215(2) repealed by No 93 of 2011, s 3 and Sch 3 item 23, effective 8 September 2011. For application, savings and transitional provisions see note under Div 355 heading. S 40-215(2) formerly read:

40-215(2)
Subsection (1) does not apply to deductions for research and development plant expenditure (sections 73B and 73BA of the Income Tax Assessment Act 1936 ).
Note:

Subsection (2) does not have the effect that deductions for the same amount of any such expenditure will be allowable under both this Division and section 73B or 73BA . Such an outcome is prevented by subsection 40-25(2) (including as applied by section 73BC for the purposes of section 73BA ) and subsections 73B(20) and 73BA(7) .

S 40-215(2) substituted by No 101 of 2006 , s 3 and Sch 2 item 664, effective 14 September 2006. For application and savings provisions see the CCH Australian Income Tax Legislation archive . S 40-215(2) formerly read:

40-215(2)
Subsection (1) does not apply to deductions for:

(a) research and development plant expenditure (sections 73B and 73BA of the Income Tax Assessment Act 1936 ); or
Note:

Paragraph (a) does not have the effect that deductions for the same amount of any such expenditure will be allowable under both this Division and section 73B or 73BA. Such an outcome is prevented by subsection 40-25(2) (including as applied by section 73BC for the purposes of section 73BA ) and subsections 73B(20) and 73BA(7) .

(b) development and investment allowances (Subdivisions B and BA of Division 3 of Part III of that Act); or

(c) drought investment allowance (Part XII of that Act).

S 40-215 amended by No 170 of 2001, inserted by No 76 of 2001.

Disclaimer and notice of copyright applicable to materials provided by CCH Australia Limited

CCH Australia Limited ("CCH") believes that all information which it has provided in this site is accurate and reliable, but gives no warranty of accuracy or reliability of such information to the reader or any third party. The information provided by CCH is not legal or professional advice. To the extent permitted by law, no responsibility for damages or loss arising in any way out of or in connection with or incidental to any errors or omissions in any information provided is accepted by CCH or by persons involved in the preparation and provision of the information, whether arising from negligence or otherwise, from the use of or results obtained from information supplied by CCH.

The information provided by CCH includes history notes and other value-added features which are subject to CCH copyright. No CCH material may be copied, reproduced, republished, uploaded, posted, transmitted, or distributed in any way, except that you may download one copy for your personal use only, provided you keep intact all copyright and other proprietary notices. In particular, the reproduction of any part of the information for sale or incorporation in any product intended for sale is prohibited without CCH's prior consent.