INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)
[ CCH Note: The Heritage conservation rebate will be converted into a grants program from 1 July 1999 - see Div 30 of ITAA '97. The new program, announced in the 1999/2000 Federal Budget and named the Cultural Heritage Projects Program, will have a total funding cap of $3.6m for 1999/2000.
The Cultural Heritage Projects Program is a program funded for six years from 1 July 1999. The program is administered by Environment Australia and is open to private owners, legally incorporated not-for-profit organisations and local government authorities.
The program supports the conservation of places of cultural significance - historic and Indigenous heritage. Only historic or Indigenous places on the Register of the National Estate, its Interim list or State heritage registers are eligible for funding. Projects that aim to identify Indigenous Heritage places for appropriate listing or conservation planning may also be supported.]
The following is a simplified outline of this Subdivision:
|1.||The Subdivision provides for rebates of tax for approved expenditure on certain conservation work on heritage listed buildings and structures. The expenditure must be at least $5,000. The entitlement to the rebate is set out in section 159UQ (taxpayers other than partnerships or trustees), section 159UR (partnerships), section 159US (trust estates) and section 159UT (corporate unit trusts and public trading trusts).|
|2.||The Subdivision also contains a provision (subsection 159UU(1)) ensuring that deductions are not obtained for amounts for which there is an entitlement to a rebate.|
|3.||Obtaining a rebate is a 2 step process.|
|B: Step 1 - provisional certificate|
|1.||The taxpayer applies for a provisional certificate (section 159UG).|
|2.||The Minister then determines whether a provisional certificate is to be issued to the taxpayer and, if it is, issues the certificate (sections 159UJ and 159UK). The certificate specifies the maximum amount of expenditure that will be eligible for a rebate. In making his or her decision, the Minister will take into account criteria and procedures that he or she issues (sections 159UF and 159UJ).|
|3.||The total of the amounts specified in certificates that the Minister approves in a financial year is not to exceed a limit set by the Minister (section 159UD). As a result, not all applications that may otherwise have been approved will be able to be approved, and some taxpayers may get approval for only part of the expenditure that they will incur.|
|C: Step 2 - final certificate|
|1.||When a taxpayer who has been issued with a provisional certificate finishes the work, the taxpayer may apply for a final certificate (section 159UM). The work must be completed, and the final certificate applied for, while the provisional certificate is in force.|
|2.||If the work is to the standard specified in the provisional certificate (section 159UO) and the expenditure is at least $5,000 (section 159UM), the taxpayer will be issued with a final certificate.|