CHAPTER 2
-
LIABILITY RULES OF GENERAL APPLICATION
PART 2-10
-
CAPITAL ALLOWANCES: RULES ABOUT DEDUCTIBILITY OF CAPITAL EXPENDITURE
Division 40
-
Capital allowances
History
Div 40 substituted for Divs 40, 41 and 42 by No 76 of 2001.
Subdivision 40-F
-
Primary production depreciating assets
History
Subdiv 40-F inserted by No 76 of 2001.
Operative provisions
SECTION 40-525
Conditions
Water facilities
40-525(1)
The capital expenditure you incurred on the construction, manufacture, installation or acquisition of the
*
water facility must have been incurred:
(a)
primarily and principally for the purpose of conserving or conveying water for use in a
*
primary production business that you conduct on land in Australia; or
(b)
for expenditure incurred by an
*
irrigation water provider
-
primarily and principally for the purpose of conserving or conveying water for use in primary production businesses conducted by other entities on land in Australia, being entities supplied with water by the irrigation water provider.
Note:
If Division
250
applies to you and an asset that is a water facility:
(a) if section
250-150
applies
-
the condition in this subsection is taken not to be satisfied for the facility to the extent specified under subsection
250-150(3)
; or
(b) otherwise
-
the condition in this subsection is taken not to be satisfied for the facility.
History
S 40-525(1) amended by No 15 of 2017, s 3 and Sch 4 item 41, by inserting
"
not
"
in para (a) of the note, effective 1 April 2017.
S 40-525(1) amended by No 67 of 2015, s 3 and Sch 2 item 13, by omitting
"
in a determination made
"
after
"
to the extent specified
"
from para (a) of the note, applicable to assets that an entity starts to hold, or to expenditure an entity incurs, at or after 7.30 pm, by legal time in the Australian Capital Territory, on 12 May 2015.
S 40-525(1) amended by
No 164 of 2007
, s 3 and Sch 1 item 46, by inserting the note at the end, effective 25 September 2007.
S 40-525(1) substituted by No 23 of 2005.
Horticultural plants
40-525(2)
One of the conditions in this table must be satisfied:
Conditions relating to horticultural plants
|
Item
|
Condition
|
1 |
You own the *horticultural plant and any holder of a lease, lesser interest or licence relating to the land does not carry on a *business of *horticulture on the land |
. |
2 |
The *horticultural plant is attached to land you hold under a lease, or a *quasi-ownership right granted by an *exempt Australian government agency or an *exempt foreign government agency, and: |
|
(a) |
the lease or quasi-ownership right enables you to carry on a *business of *horticulture on the land; and |
|
(b) |
any holder of a lesser interest or licence relating to the land does not carry on a *business of *horticulture on the land. |
. |
3 |
You: |
|
(a) |
hold a licence relating to the land to which the *horticultural plant is attached; and |
|
(b) |
carry on a *business of *horticulture on the land as a result of holding the licence. |
Note:
If Division
250
applies to you and an asset that is a horticultural plant:
(a) if section
250-150
applies
-
a condition in this subsection is taken not to be satisfied for the plant to the extent specified under subsection
250-150(3)
; or
(b) otherwise
-
the conditions in this subsection are taken not to be satisfied for the horticultural plant.
History
S 40-525(2) amended by No 15 of 2017, s 3 and Sch 4 item 41, by inserting
"
not
"
in para (a) of the note, effective 1 April 2017.
S 40-525(2) amended by No 67 of 2015, s 3 and Sch 2 item 13, by omitting
"
in a determination made
"
after
"
to the extent specified
"
from para (a) of the note, applicable to assets that an entity starts to hold, or to expenditure an entity incurs, at or after 7.30 pm, by legal time in the Australian Capital Territory, on 12 May 2015.
S 40-525(2) amended by
No 164 of 2007
, s 3 and Sch 1 item 47, by inserting the note at the end, effective 25 September 2007.
Fodder storage assets
40-525(3)
The capital expenditure you incurred on the construction, manufacture, installation or acquisition of the *fodder storage asset must have been incurred primarily and principally for use in a *primary production business that you conduct on land in Australia.
Note:
If Division
250
applies to you and an asset that is a fodder storage asset:
(a) if section
250-150
applies
-
the condition in this subsection is taken not to be satisfied for the asset to the extent specified under subsection
250-150(3)
; or
(b) otherwise
-
the condition in this subsection is taken not to be satisfied for the asset.
History
S 40-525(3) amended by No 15 of 2017, s 3 and Sch 4 item 41, by inserting
"
not
"
in para (a) of the note, effective 1 April 2017.
S 40-525(3) inserted by No 67 of 2015, s 3 and Sch 2 item 14, applicable to assets that an entity starts to hold, or to expenditure an entity incurs, at or after 7.30 pm, by legal time in the Australian Capital Territory, on 12 May 2015.
Former s 40-525(3) repealed by No 129 of 2004.
Fencing assets
40-525(4)
The capital expenditure you incurred on the construction, manufacture, installation or acquisition of the *fencing asset must have been incurred primarily and principally for use in a *primary production business that you conduct on land in Australia.
Note:
If Division
250
applies to you and an asset that is a fencing asset:
(a) if section
250-150
applies
-
the condition in this subsection is taken not to be satisfied for the asset to the extent specified under subsection
250-150(3)
; or
(b) otherwise
-
the condition in this subsection is taken not to be satisfied for the asset.
History
S 40-525(4) amended by No 15 of 2017, s 3 and Sch 4 item 41, by inserting
"
not
"
in para (a) of the note, effective 1 April 2017.
S 40-525(4) inserted by No 67 of 2015, s 3 and Sch 2 item 14, applicable to assets that an entity starts to hold, or to expenditure an entity incurs, at or after 7.30 pm, by legal time in the Australian Capital Territory, on 12 May 2015.
History
S 40-525 inserted by No 76 of 2001.