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-H inserted by No 76 of 2001.
You can deduct expenditure you incur in an income year for the sole or dominant purpose of carrying on
environmental protection activities.
applies to you and an asset that is land:
- (a) if section
you cannot deduct expenditure you incur in relation to the land to the extent specified under subsection
- (b) otherwise
you cannot deduct such expenditure.
S 40-755(1) amended by No 15 of 2017, s 3 and Sch 4 item 46, by substituting para (a) of the note, effective 1 April 2017. Para (a) of the note formerly read:
- (a) if section 250-150 applies
you can deduct expenditure you incur in relation to the land to the extent specified in a determination made under subsection 250-150(3); or
S 40-755(1) amended by
No 164 of 2007
, s 3 and Sch 1 item 54, by inserting the note at the end, effective 25 September 2007.
Environmental protection activities
are any of the following activities that are carried on by or for you:
(a) preventing, fighting or remedying:
(i) pollution resulting, or likely to result, from
your earning activity; or
(ii) pollution of or from the site of your earning activity; or
(iii) pollution of or from a site where an entity was carrying on any
business that you have acquired and carry on substantially unchanged as your earning activity;
(b) treating, cleaning up, removing or storing:
(i) waste resulting, or likely to result, from your earning activity; or
(ii) waste that is on or from the site of
your earning activity; or
(iii) waste that is on or from a site where an entity was carrying on any business that you have acquired and carry on substantially unchanged as your earning activity.
No other activities are environmental protection activities.
Your earning activity
is an activity you carried on, carry on, or propose to carry on:
(a) for the
purpose of producing assessable income for an income year (except a
net capital gain); or
(b) for the purpose of
exploration or prospecting; or
(c) for the purpose of
mining site rehabilitation; or
(d) for purposes that include one or more of those purposes.
your earning activity is:
(a) leasing a site you own; or
(c) a similar activity involving a site;
that site is taken to be the site of your earning activity.
This means you can deduct your expenditure on environmental protection activities relating to the site, even if the pollution or waste is caused by another entity that uses the site.
S 40-755(4) amended by
No 79 of 2010
, s 3 and Sch 3 item 17, by substituting
*right to use
right to use
in para (b), effective 1 July 2010.
S 40-755 inserted by No 76 of 2001.