Taxation Ruling
IT 2592W - Notice of Withdrawal
Income tax: cost of mains electricity connections
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Please note that the PDF version is the authorised version of this withdrawal notice.
Notice of Withdrawal
Taxation Ruling IT 2592 is withdrawn with effect from today.
1. Taxation Ruling IT 2592 considered whether a deduction was allowable under section 70A of the Income Tax Assessment Act 1936 (ITAA 1936) where the consumption of electricity was metered at a point outside the taxpayer's land. This matter is now dealt with under Subdivision 40-G of the Income Tax Assessment Act 1997 (ITAA 1997). In particular, section 40-655 of the ITAA 1997 explains what is meant by the phrase 'connecting power to land' and provides that the metering point for mains electricity needs to be on the taxpayer's land.
2. Section 70A of the ITAA 1936 was repealed by section 3 and Item 77 of Schedule 1 to the Tax Laws Amendment (Repeal of Inoperative Provisions) Act 2006 (Act No. 101 of 2006), effective from 14 September 2006. Given that section 70A of the ITAA 1936 is no longer operative and Subdivision 40-G of ITAA 1997 is now the relevant provision for this matter, IT 2592 is hereby withdrawn.
Commissioner of Taxation
4 March 2009