Income Tax Assessment Act 1997
View history note
Hide history noteNote: 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.
SECTION 40-865 Meaning of transport capital expenditure 40-865(1)
Transport capital expenditure is capital expenditure you incur, in carrying on a * business for a * taxable purpose, on:
(a) a * transport facility; or
(b) obtaining a right to construct or install a transport facility, or part of one, on land owned or leased by another entity or in an area referred to in subsection 960-505(2) (about offshore areas and installations); or
(c) paying compensation for any damage or loss caused by constructing or installing a transport facility or part of one; or
(d) earthworks, bridges, tunnels or cuttings that are necessary for a transport facility.
40-865(2)
Transport capital expenditure also includes capital expenditure you incur, in carrying on a * business for a * taxable purpose, by way of contribution to:
(a) someone else ' s capital expenditure on a * transport facility or on anything else covered by a paragraph of subsection (1); or
(b) an * exempt Australian government agency ' s capital expenditure on railway rolling-stock.
40-865(3)
Transport capital expenditure does not include expenditure on:
(a) road vehicles or ships; or
(b) railway rolling-stock; or
(c) a thing covered by the definition of housing and welfare ; or
(d) works for providing water, light or power, in connection with a port facility or other facility for ships;
and does not include expenditure by way of contribution to that expenditure (except expenditure by way of contribution to an * exempt Australian government agency ' s capital expenditure on railway rolling-stock).
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