Commonwealth Consolidated Acts Commonwealth Consolidated Acts
Taxation Laws Amendment Act (No. 1) 2001
1 Subsection 240 - 3(4)
Omit "for depreciation (under Division 42) or under any of the other capital allowances (listed in Division 40)", substitute "under Division 40 (about capital allowances)".
2 Subsection 240 - 7(2)
Repeal the subsection, substitute:
(2) If the property is not trading stock, the notional buyer may be able to deduct amounts for the expenditure under Division 40 (about capital allowances)".
3 Subsection 240 - 90(4)
Omit "for the purpose of calculating the depreciation allowable to that person for the car, would have been reduced because of the operation of section 42 - 80", substitute "for the purpose of working out its decline in value for that person under Division 40, would have been limited by section 40 - 230".
4 Subsection 240 - 90(5)
Repeal the subsection, substitute:
(5) Where an associate of the * notional buyer acquires the * car, the * cost of the car for the purposes of the application of Division 40 to the associate is taken to be whichever is the lesser of:
(a) the sum of:
(i) the amount that would have been the * adjustable value of the car at that time for the purposes of the application of that Division to the notional buyer if the notional buyer were not taken under this Division to have disposed of the car; and
(ii) any amount that is included in the notional buyer's assessable income under section 40 - 285 because the notional buyer is taken to have disposed of the car; or
(b) the cost of the acquisition of the car by the associate.
5 Subsection 243 - 35(3)
Repeal the subsection, substitute:
(3) The reference in step 2 of the method statement in subsection (2) to an amount that is included in the assessable income of a taxpayer as a result of the disposal of the * financed property includes a reference to an amount that is included under section 26AG of the Income Tax Assessment Act 1936 as a result of the disposal of the financed property.
Note: Division 20 deals with amounts included to reverse the effect of past deductions.
6 Application
The amendments made by this Schedule apply to arrangements entered into on or after 1 July 2001 .