Commonwealth Consolidated Acts

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INCOME TAX ASSESSMENT ACT 1997 - SECT 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).


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