Document ID: chunk:federal_register_of_legislation:C2025C00029:section:2:p3
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 2 (pt 3/9)
Character Range: 955399–958352

is excluded from the *car limit by subsection 40‑230(2).

40‑230  Adjustment: car limit
 (1) The first element of the cost of a *car designed mainly for carrying passengers (after applying section 40‑225 and Subdivision 27‑B) is reduced to the *car limit for the *financial year in which you started to *hold it if its cost exceeds that limit.
 (2) However, the *car limit does not apply to a *car:
 (a) fitted out for transporting disabled people in wheelchairs for profit; or
 (b) whose first element of *cost exceeds that limit only because of modifications made to enable an individual with a disability to use it for a *taxable purpose.
 (3) The car limit for the 2000‑01 *financial year is $55,134. The limit is indexed annually.
Note: Subdivision 960‑M shows you how to index amounts.
 (4) If you *hold a *car that is also held by one or more other entities, subsection (1) applies to the *cost of the car despite section 40‑35. Then section 40‑35 applies to the cost of the car as reduced under subsection (1).

40‑235  Adjustment: National Disability Insurance Scheme costs
  The *cost of a *depreciating asset does not include an amount to the extent that section 26‑97 prevents the amount from being deducted (even if some other provision also prevents it being deducted).
Note: Section 26‑97 denies deductions for National Disability Insurance Scheme expenditure.

Subdivision 40‑D—Balancing adjustments

Guide to Subdivision 40‑D

40‑280  What this Subdivision is about

      You may have to make an adjustment to your taxable income if you stop holding a depreciating asset.
      The adjustment is generally based on the difference between the actual value of the asset when you stop holding it and its adjustable value.

Table of sections

Operative provisions
40‑285 Balancing adjustments
40‑290 Reduction for non‑taxable use
40‑291 Reduction for second‑hand assets used in residential property
40‑292 Adjustments—assets used for both general tax purposes and R&D activities
40‑293 Adjustments—partnership assets used for both general tax purposes and R&D activities
40‑295 Meaning of balancing adjustment event
40‑300 Meaning of termination value
40‑305 Amount you are taken to have received under a balancing adjustment event
40‑310 Apportionment of termination value
40‑320 Car to which section 40‑225 applies
40‑325 Adjustment: car limit
40‑335 Deduction for in‑house software where you will never use it
40‑340 Roll‑over relief
40‑345 What the roll‑over relief is
40‑350 Additional consequences
40‑360 Notice to allow transferee to work out how this Division applies
40‑362 Roll‑over relief for holders of vessels covered by certificates under the Shipping Reform (Tax Incentives) Act 2012
40‑363 Roll‑over relief for interest realignment arrangements
40‑364 Interest realignment adjustments
40‑365 Involuntary disposals
40‑370 Balancing adjustments where there has been use of different car expense methods

Operative provisions