Income Tax Assessment Act 1997

CHAPTER 2 - LIABILITY RULES OF GENERAL APPLICATION

PART 2-10 - CAPITAL ALLOWANCES: RULES ABOUT DEDUCTIBILITY OF CAPITAL EXPENDITURE

Division 40 - Capital allowances

Commissioner ' s Remedial Power

Note: 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.

Subdivision 40-F - Primary production depreciating assets

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Operative provisions

SECTION 40-530 When declines in value start

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40-530(1)
A *water facility, *fodder storage asset or *fencing asset starts to decline in value in the income year in which you first incur expenditure on the facility or asset.

40-530(2)
A *horticultural plant starts to decline in value in:

(a) if you are the first entity to satisfy a condition in subsection 40-525(2) for the plant - the income year in which the first commercial season starts; or

(b) if not - the later of the income year in which you first satisfied that condition and the income year in which the first commercial season starts.

View history note

History

S 40-530 substituted by No 67 of 2015, s 3 and Sch 2 item 15, applicable to assets that an entity starts to hold, or to expenditure an entity incurs, at or after 7.30 pm, by legal time in the Australian Capital Territory, on 12 May 2015. S 40-530 formerly read:

SECTION 40-530 When a water facility or horticultural plant starts to decline in value
40-530
A ^* water facility or horticultural plant starts to decline in value in the income year worked out using this table:

Start of decline in value

Item This asset: Starts to decline in value in:

1 A *water facility the income year in which you first incur expenditure on the facility

2 A *horticultural plant (a) if you are the first entity to satisfy a condition in subsection 40-525(2) for the plant - the income year in which the first commercial season starts; or

(b) if not - the later of the income year in which you first satisfied that condition and the income year in which the first commercial season starts

3 (Repealed by No 129 of 2004)

S 40-530 amended by No 129 of 2004 and inserted by No 76 of 2001.

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Start of decline in value
Item	This asset:	Starts to decline in value in:
1	A *water facility	the income year in which you first incur expenditure on the facility

2	A *horticultural plant	(a)	if you are the first entity to satisfy a condition in subsection 40-525(2) for the plant - the income year in which the first commercial season starts; or
		(b)	if not - the later of the income year in which you first satisfied that condition and the income year in which the first commercial season starts

3	(Repealed by No 129 of 2004)