Div 40 substituted for Divs 40, 41 and 42 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.
Primary production depreciating assets
The decline in value of a
horticultural plant for the income year in which it starts to decline in value is all of the capital expenditure attributable to the establishment of the plant if its
effective life is less than 3 years.
You work out the decline in value for an income year of a
horticultural plant whose
effective life is 3 years or more in this way:
Write-off days in income year
is the amount of capital expenditure incurred that is attributable to the establishment of the
write-off days in income year
is the number of days in the income year on which you satisfied a condition in subsection
for the plant and either used it for
commercial horticulture or held it ready for that use.
is the rate shown in this table for the
horticultural plant according to its
Write-off rate for horticultural plant
Effective life of:
The write-off rate is:
3 to fewer than 5 years
5 to fewer than 6
to fewer than 10 years
10 to fewer than 13 years
13 to fewer than 30 years
30 years or more
Limit on write-off days
Disregard your use of the
horticultural plant on a day outside the period that:
(a) starts when the plant
first be used for
commercial horticulture; and
(b) extends for the time shown in this table (depending on the plant's
Period after which you cannot count use of horticultural plant