Electricity connections and telephone lines
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You can claim a deduction over 10 years for capital expenditure incurred in connecting:
- mains electricity to land on which a business is carried on or in upgrading an existing connection to that land
- a telephone line to land being used to carry on a primary production business.
If the expenditure incurred arises from a non-arm's length dealing and is more than the market value of what it was for, the amount of the expenditure is taken to be that market value.
These deductions are not available in calculating the net income or loss of a partnership. The expenditure is allocated to each partner and deducted against the partner's income.
Any recoupment of the expenditure is included in your assessable income.
Last modified: 01 Jun 2005QC 27399