Taxation Ruling

IT 78

Investment allowance: petroleum products pipeline

• Please note that the PDF version is the authorised consolidated version of this ruling and amending notices.

  View the Addendum notice for this document.

  This ruling contains references to repealed provisions, some of which may have been rewritten. The ruling still has effect. Paragraph 32 in TR 2006/10 provides further guidance on the status and binding effect of public rulings where the law has been repealed or repealed and rewritten. The legislative references at the end of the ruling indicate the repealed provisions and, where applicable, the rewritten provisions.

FOI status:

Preamble

Consideration has been given to the question of whether the costs of trenching and backfilling for an underground petroleum products pipeline form part of the capital cost of a pipeline for depreciation purposes and also qualify as "eligible expenditure" for investment allowance purposes.

Ruling

2. It is considered that the costs of trenching and backfilling for a petroleum products pipeline would constitute an essential part of the installation cost of an underground pipeline. The view held is that such costs form part of the capital cost of a pipeline for depreciation purposes and qualify as eligible expenditure for purposes of calculating the investment allowance.

Commissioner of Taxation
4 March 1980

References

ATO references:
NO 80/3156 F40

Date original memo issued:
04.03.80

Related Rulings/Determinations:

IT 78A

Subject References:
depreciation
investment allowance
petroleum products pipeline

Legislative References:
ITAA 54
ITAA 82AA
ITAA 82AB
ITAA 82AC
ITAA 82AD
ITAA 82AE
ITAA 82AF
ITAA 82AG
ITAA 82AH
ITAA 82AHA
ITAA 82AI
ITAA 82AJ
ITAA 82AK
ITAA 82AL
ITAA 82AM
ITAA 82AN
ITAA 82AO
ITAA 82AP
ITAA 82APA
ITAA 82AQ