INCOME TAX ASSESSMENT ACT 1997

CHAPTER 2 - LIABILITY RULES OF GENERAL APPLICATION  

PART 2-10 - CAPITAL ALLOWANCES: RULES ABOUT DEDUCTIBILITY OF CAPITAL EXPENDITURE  

Division 40 - Capital allowances  

Subdivision 40-H - Capital expenditure that is immediately deductible  

Operative provisions

SECTION 40-755   Environmental protection activities  

40-755(1)  
You can deduct expenditure you incur in an income year for the sole or dominant purpose of carrying on *environmental protection activities.

40-755(2)  
Environmental protection activities are any of the following activities that are carried on by or for you:


(a) preventing, fighting or remedying:


(i) pollution resulting, or likely to result, from *your earning activity; or

(ii) pollution of or from the site of your earning activity; or

(iii) pollution of or from a site where an entity was carrying on any *business that you have acquired and carry on substantially unchanged as your earning activity;


(b) treating, cleaning up, removing or storing:


(i) waste resulting, or likely to result, from your earning activity; or

(ii) waste that is on or from the site of *your earning activity; or

(iii) waste that is on or from a site where an entity was carrying on any business that you have acquired and carry on substantially unchanged as your earning activity.

No other activities are environmental protection activities.

40-755(3)  
Your earning activity is an activity you carried on, carry on, or propose to carry on:


(a) for the *purpose of producing assessable income for an income year (except a *net capital gain); or


(b) for the purpose of *exploration or prospecting; or


(c) for the purpose of *mining site rehabilitation; or


(d) for purposes that include one or more of those purposes.

40-755(4)  
If *your earning activity is:


(a) leasing a site you own; or


(b) granting a *right to use a site you own or control; or


(c) a similar activity involving a site;

that site is taken to be the site of your earning activity.


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