Income Tax Assessment Act 1997
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Hide history noteNote: 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.
SECTION 40-291A Fixed reduction for certain assets used to produce assessable labour income 40-291A(1)
Instead of a reduction under section 40-290 or 40-291 , you may reduce, by a fixed amount, the amount (the balancing adjustment amount ) included in your assessable income, or the amount you can deduct, under section 40-285 for a * depreciating asset if: (a) the depreciating asset has been used at any time for the purpose of gaining or producing your * assessable labour income; and (b) you have deducted an amount under section 25-130 for an income year (whether the income year in which the * balancing adjustment event that gave rise to the balancing adjustment amount occurred or another income year); and (c) the * effective life of the depreciating asset overlaps, wholly or partly, with that income year.
40-291A(2)
The amount of the reduction is 50% of the balancing adjustment amount.
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