• Establishing the deduction base

    Attention

    Warning:

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

    End of attention

    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 43External Link 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 43–90External Link of the ITAA 1997.
    Last modified: 21 Aug 2015QC 44343