{"id":"F2017L01687","name":"Taxation Administration (Remedial Power – Small Business Restructure Roll-over) Determination 2017","slug":"taxation-administration-remedial-power-small-business-restructure-roll-over-determination-2017","collection":"legislative_instrument","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":null,"makingDate":null,"administeringDepartment":null,"currentVersion":{"id":96574,"registerId":"commonwealth-F2017L01687-current","compilationNumber":null,"startDate":"2026-04-02","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"1. Name of determination","sectionType":"part","heading":"1. Name of determination","content":"## 1. Name of determination\n\nThis determination is the Taxation Administration (Remedial Power – Small Business Restructure Roll-over) Determination 2017.","sortOrder":0},{"sectionNumber":"2. Commencement","sectionType":"part","heading":"2. Commencement","content":"## 2. Commencement\n\nEach provision of this determination specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of the table. Any other statement in column 2 has effect according to its terms.\n\n```html\n

Commencement information

Column 1

Column 2

Column 3

Provisions

Commencement

Date/Details

1. The whole of this determination

The first day this determination is no longer liable to be disallowed, or to be taken to have been disallowed, under section 42 of the Legislation Act 2003.

\n```\n\n> Note: This table relates only to the provisions of this instrument as originally made. It will not be amended to deal with any later amendments of this instrument.\n\nAny information in column 3 of the table is not part of this instrument. Information may be inserted in this column, or information in it may be edited, in any published version of this instrument.","sortOrder":1},{"sectionNumber":"3. Authority","sectionType":"part","heading":"3. Authority","content":"## 3. Authority\n\nThis determination is made under section 370\\-5 of Schedule 1 to the Taxation Administration Act 1953.","sortOrder":2},{"sectionNumber":"4. Modifications","sectionType":"part","heading":"4. Modifications","content":"## 4. Modifications\n\nEach modification of the operation of a provision of a taxation law as set out in a Schedule to this determination is determined for the purposes of section 370\\-5 of Schedule 1 to the Taxation Administration Act 1953.","sortOrder":3},{"sectionNumber":"Schedule 1","sectionType":"part","heading":"Modifications","content":"## Schedule 1—Modifications\n\n1 Depreciating assets transferred in a small business restructure roll‑over\n\n(1) The operation of:\n\n (a) section 40‑340 of the Income Tax Assessment Act 1997; and\n (b) any other provision of a taxation law the operation of which is affected by the operation of that section (as modified by this instrument) in relation to an asset covered by item 8 of the table in subsection 40‑340(1) of that Act;\n\nis modified in the way set out below.\n\nModification\n\n(2) If section 40‑340 of that Act provides for roll‑over relief in relation to a disposal of a depreciating asset because the condition in item 8 of the table in subsection 40‑340(1) of that Act 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 Division 40 of that Act).\n\n(3) The modification applies in respect of transfers on or after the day after this instrument commences.\n\n(4) The modification does not affect the application of the income tax law in relation to:\n\n (a) anything that happens in relation to the asset that does not directly relate to the transfer; or\n (b) the ownership of the asset at any time.","sortOrder":4}],"analysis":{"flash_summary_failed":{"failed":true,"reason":"A positive credit balance is required for all requests, including BYOK, so fallback providers remain available. Add credits at https://vercel.com/d?to=%2F%5Bteam%5D%2F%7E%2Fai%3Fmodal%3Dtop-up to continue.","source":"analysis-cron"},"flash_summary":{"complexity_score":5,"scope_assessment":{"changed":true,"description":"The determination narrows the scope of the roll‑over in section 40‑340 for depreciating assets meeting item 8 by removing direct income‑tax consequences outside Division 40 on qualifying transfers (Schedule 1(2)). It applies to transfers from the day after commencement (Schedule 1(3)) and preserves treatment of unrelated events and ownership (Schedule 1(4))."},"complexity_factors":["Cross‑references to multiple tax provisions (section 40‑340, Division 40, and s370‑5 of Schedule 1 to the Taxation Administration Act 1953) create technical dependency.","Narrow, asset‑specific scope (assets covered by item 8 of subsection 40‑340(1)) requires precise asset characterisation by taxpayers and advisers.","The phrase 'no direct consequences under the income tax law (other than Division 40)' raises interpretive questions about what counts as a 'direct consequence' and which provisions are therefore excluded.","Modification applies to 'other provisions of a taxation law the operation of which is affected by the operation of that section', creating potential knock‑on effects that need mapping.","Temporal rule (applies to transfers on or after the day after commencement) limits retrospective exposure but requires attention to timing of restructures.","Explicit carve‑outs for unrelated events and ownership (Schedule 1(4)(a)–(b)) add conditional complexity when distinguishing transfer‑related effects from other dealings."],"plain_english_summary":"This instrument changes how the small business restructure roll‑over in section 40‑340 treats certain depreciating assets: when the item 8 condition applies, the disposal on restructure produces no direct income‑tax consequences except under Division 40. It applies to transfers on or after commencement and affects taxpayers and advisers by confining tax outcomes to depreciation rules while leaving unrelated events and ownership unchanged (Schedule 1(2)–(4); made under s370‑5)."},"kimi_summary":{"content_quality":"ok","complexity_score":3,"scope_assessment":{"changed":false,"description":"This determination performs exactly the narrow, technical fix it was designed for. It does not expand beyond the original purpose of the small business restructure roll-over provisions; it merely corrects an unintended consequence affecting depreciating assets. The scope remains tightly constrained to the specific remedial purpose."},"complexity_factors":["Very short instrument (only 4 sections plus a brief Schedule)","Only 1 defined term implicitly used ('taxation law' from the empowering Act)","Single, targeted modification to one section of the Income Tax Assessment Act 1997 (section 40-340)","Simple conditional logic: if the roll-over condition is met, then extend the relief","No nested exceptions — only a straightforward carve-out preserving unrelated tax treatment","Commencement tied to disallowance period under the Legislation Act 2003, which is standard for legislative instruments"],"plain_english_summary":"This remedial power determination fixes a drafting glitch so small businesses using the restructure roll-over can transfer depreciating assets without inadvertently triggering unrelated income tax consequences — preserving the intended deferral except for normal depreciation rules (Division 40). Made under the Commissioner's remedial power, it applies to transfers on or after the instrument’s start date and protects small business owners and advisers from unexpected tax bills."}},"importantCases":[],"_links":{"self":"/api/acts/taxation-administration-remedial-power-small-business-restructure-roll-over-determination-2017","history":"/api/acts/taxation-administration-remedial-power-small-business-restructure-roll-over-determination-2017/history","analysis":"/api/acts/taxation-administration-remedial-power-small-business-restructure-roll-over-determination-2017/analysis","conflicts":"/api/acts/taxation-administration-remedial-power-small-business-restructure-roll-over-determination-2017/conflicts","importantCases":"/api/acts/taxation-administration-remedial-power-small-business-restructure-roll-over-determination-2017/important-cases","documents":"/api/acts/taxation-administration-remedial-power-small-business-restructure-roll-over-determination-2017/documents"}}