CHAPTER 2 - LIABILITY RULES OF GENERAL APPLICATION
PART 2-10 - CAPITAL ALLOWANCES: RULES ABOUT DEDUCTIBILITY OF CAPITAL EXPENDITURE
Division 43 - Deductions for capital works
Subdivision 43-H - Balancing deduction on destruction of capital works
The amount of the balancing deduction
Calculate the amount (if any) by which the *undeducted construction expenditure for the part of *your area that was destroyed exceeds the amounts you have received or have a right to receive for the destruction of that part.
Reduce the amount at Step 1 if one or more of these happened to that part of *your area:
(a) Step 2 or 4 in section 43-210, or Step 2 or 3 in section 43-215, applied to you or another person for it;
(b) you were, or another person was, not allowed a deduction for it under this Division;
(c) a deduction for it was not allowed or was reduced (for you or another person) under former Division 10C or 10D of Part III of the Income Tax Assessment Act 1936.
The reduction under this step must be reasonable.