The fund can claim a deduction under Division 43 for an income year only if it:
- owns, leases or holds under quasi-ownership rights part of a construction expenditure area of capital works (‘your area’)
- incurred the construction expenditure or is an assignee of the lessee or holder who incurred the expense (in the case where the fund is a lessee of the capital works or is a holder of a quasi-ownership right), and
- uses ‘your area’ in a deductible way (which generally means to produce assessable income).
In calculating the fund's deduction, identify ‘your area’ for each construction expenditure area of the capital works. Your area may comprise the whole of the construction area or part of it.