INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)
Where, as at the end of the year of income, there is, in relation to a taxpayer, an amount of residual (19 August 1981 to 19 July 1982) capital expenditure, an amount ascertained in accordance with this section is an allowable deduction.
A deduction is not allowable under subsection (1) for the 1997-98 year of income or any later year of income.
Section 330-1 of the Income Tax (Transitional Provisions) Act 1997 converts any undeducted residual (19 August 1981 to 19 July 1982) capital expenditure at the end of the 1996-97 year of income into allowable capital expenditure incurred by a taxpayer in the 1997-98 year of income.
Subject to subsection (3), the deduction allowable is the amount ascertained by dividing the amount of residual (19 August 1981 to 19 July 1982) capital expenditure referred to in subsection (1) by:
(a) a number equal to the number of whole years in the estimated life of the mine or proposed mine on the mining property, or, if there is more than one such mine, of the mine that has the longer or longest estimated life, as at the end of the year of income; or
whichever number is the less.
Unless the taxpayer makes an election under subsection (4) in relation to the year of income, the amount, or the total of the amounts, of the deduction or deductions allowable under this section shall not exceed an amount equal to so much of the assessable income of the year of income as remains after deducting all allowable deductions, other than deductions allowable under this section or under section 122DG or 122J , and, where the total of the amounts of 2 or more deductions that would be allowable under this section but for this subsection exceeds the maximum amount determined in accordance with this subsection, those deductions shall be reduced respectively by amounts proportionate to those deductions and equal in total to the excess.
A taxpayer may elect, in relation to a year of income, that subsection (3) shall not apply in respect of the taxpayer.
Where, having regard to the information in his possession, the Commissioner is not satisfied that the estimated life of a mine or a proposed mine as made by the taxpayer is a reasonable estimate, the estimated life shall, for the purposes of subsection (2), be taken to be such period as the Commissioner considers reasonable.
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