The fund can deduct an amount for capital works if there is a construction expenditure area for the capital works.
Whether there is such an area and how it is identified depends on:
- the type of expenditure incurred (only construction expenditure as defined in section 43-70 of the ITAA 1997 is deductible under Division 43 of the ITAA 1997)
- the time the capital works commenced
- the area of the capital works to be owned, leased or held by the entity that incurred the expenditure
- for capital works begun before 1 July 1997, the area of the capital works that was to be used in a particular manner, see section 43–90 of the ITAA 1997.