INCOME TAX ASSESSMENT ACT 1997
LIABILITY RULES OF GENERAL APPLICATION
CAPITAL ALLOWANCES: RULES ABOUT DEDUCTIBILITY OF CAPITAL EXPENDITURE
Div 40 substituted for Divs 40, 41 and 42 by No 76 of 2001.
Subdiv 40-D inserted by No 76 of 2001.
s Remedial Power
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
Income Tax Assessment Act 1997
and any other provisions of a taxation law whose operation is affected by the modified operation of s
in relation to an asset transferred under a small business restructure roll-over (item 8 of the table in s
The operation of the relevant provisions is modified as follows:
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
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
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
Taxation Administration Act 1953
to make modifications, by legislative instrument, to ensure the law is administered to achieve its intended purpose or object.
SECTION 40-293 Adjustments
partnership assets used for both general tax purposes and R
| View history reference
This section applies to an *R
D partnership if:
(a) a *balancing adjustment event happens in an income year (the
) for a *depreciating asset *held by the R
D partnership and for which:
(i) the R
D partnership can deduct, for an income year, an amount under section
, as that section applies apart from Division
and former section
Income Tax Assessment Act 1936
(ii) the R
D partnership could have deducted, for an income year, an amount as described in subparagraph (i) if it had used the asset; and
(b) one or more partners of the R
D partnership are entitled under section
to *tax offsets for one or more income years for deductions (the
) under section
for the asset.
This section applies in a modified way if the partners have deductions for the asset under former section
Income Tax Assessment Act 1936
Income Tax (Transitional Provisions) Act 1997
Section 40-290 to be applied as if use for conducting R
D activities were use for a taxable purpose
In applying section
(including references in that section to the reduction of deductions under section
) in relation to the asset, assume that using the asset for a *taxable purpose includes using it for the purpose of conducting the *R
D activities to which the R
D deductions relate.
Increase in amounts deductible or assessable under section 40-285
Any amount (the
section 40-285 amount
(a) that the *R
D partnership can deduct for the asset under section
(after applying subsection (2) of this section) for the event year; or
(b) that is included in the R
s assessable income for the asset under section
(after applying subsection (2) of this section) for the event year;
is increased by
of the following amount:
|Sum of all R
D deductions||×||Adjusted section 40-285 amount|
|Total decline in value|
adjusted section 40-285 amount means:
(a) if the section
amount is a deduction
the amount of the deduction; or
(b) if the section
amount is an amount included in the *R
s assessable income
so much of the section
amount as does not exceed the total decline in value.
total decline in value means the *cost of the asset less its *adjustable value.
S 40-293 inserted by No 93 of 2011, s 3 and Sch 3 item 24, effective 8 September 2011. For application, savings and transitional provisions see note under Div