INCOME TAX ASSESSMENT ACT 1997

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-B - Establishing the deduction base  

SECTION 43-65   43-65   Explanatory material  
Expenditure in respect of the construction of capital works is only eligible for a deduction under this Division if there is a construction expenditure area for the capital works. The area defined as the construction expenditure area may comprise the whole of the capital works or only part of them.

Whether there is a construction expenditure area for capital works and how it is identified depends on the following factors:

  • · the type of expenditure incurred;
  • · the time when the capital works began;
  • · the area of the capital works that is 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.
  • A pool of construction expenditure is that part of an amount of construction expenditure that is attributable to a particular construction expenditure area.


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