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You can claim a deduction in equal instalments 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 such land, or
- a telephone line brought on or extending to land being used to carry on a primary production business.
Any recoupment of the deductible expenditure may be included in your assessable income. As the expenditure is deductible over more than one income year, special rules apply to determine the amount of any recoupment to be included in assessable income in the year of recoupment and in later income years.
These deductions are not available to a partnership. Costs incurred by a partnership for mains electricity supply or telephone lines are allocated to each partner, who can then claim the relevant deduction in respect of their share of the expenditure.
Last modified: 31 Aug 2010QC 18464