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  • Limited recourse debt arrangements

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    This information may not apply to the current year. Check the content carefully to ensure it is applicable to your circumstances.

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    When construction expenditure is financed in whole or in part by a limited recourse debt arrangement which terminates after 27 February 1998, and part of the principal debt remains unpaid, an adjustment to assessable income will be required. The adjustment must be equal to the excess of the total amount of the capital works deduction allowed over the total amount of the deductions which would be allowable if based on actual outlays. If you are not sure how to work out your adjustment to assessable income, contact your professional adviser or the ATO.

    Last modified: 28 Jul 2003QC 16187