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.
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.
Subdiv 40-G inserted by No 76 of 2001.
for land means:
(a) erecting a fence to separate different land classes on the land in accordance with an
approved management plan for the land; or
(b) erecting a fence on the land primarily and principally for the purpose of excluding animals from an area affected by land degradation:
(i) to prevent or limit extension or worsening of land degradation in the area; and
(ii) to help reclaim the area; or
(c) constructing a levee or a similar improvement on the land; or
(d) constructing drainage works on the land primarily and principally for the purpose of controlling salinity or assisting in drainage control; or
(e) an operation primarily and principally for the purpose of:
(i) eradicating or exterminating from the land animals that are pests; or
(ii) eradicating, exterminating or destroying plant growth detrimental to the land; or
(iii) preventing or fighting land degradation (except by erecting fences on the land); or
(f) a repair of a capital nature, or an alteration, addition or extension, to an asset described in paragraph (a), (b), (c) or (d) or an extension of an operation described in paragraph (e); or
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(g) constructing a structural improvement, or a repair of a capital nature, or an alteration, addition or extension, to a structural improvement, that is reasonably incidental to an asset described in paragraph (c) or (d).
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A depreciating asset and a repair of a capital nature or an alteration, addition or extension to that asset are not the same asset for the purposes of section
and this Subdivision: see section
S 40-635(1) amended by No 23 of 2005.
Paragraph (1)(d) does not apply to an operation draining swamp or low-lying land.
S 40-635 inserted by No 76 of 2001.