Construction expenditure area
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End of attention
The construction of the capital works must be complete before the construction expenditure area is determined. A separate construction expenditure area is created each time an entity undertakes the construction of capital works.
The construction expenditure area for capital works that started after 30 June 1997 is the part of the capital works on which the construction expenditure was incurred by an entity that, at the time it was incurred, was to be owned, leased or held (under of quasi-ownership rights) by the entity.
For the construction expenditure area of capital works begun before 1 July 1997, the capital works must have been intended for use for a certain specified purpose at the time of completion. The type of capital works and the intended use on completion depends on the time when the capital works commenced. The first specified use construction time was 22 August 1979; see table 43-90External Link and subsection 43-75(2)External Link of the ITAA 1997.
No deduction is available under Division 43 of the ITAA 1997 for capital works which began on or before 21 August 1979; see subsection 43-20(1)External Link of the ITAA 1997.
Last modified: 21 Aug 2015QC 44343