INCOME TAX ASSESSMENT ACT 1997

CHAPTER 2 - LIABILITY RULES OF GENERAL APPLICATION  

PART 2-10 - CAPITAL ALLOWANCES: RULES ABOUT DEDUCTIBILITY OF CAPITAL EXPENDITURE  

Division 40 - Capital allowances  

Subdivision 40-F - Primary production depreciating assets  

Operative provisions

SECTION 40-555   Amounts you cannot deduct  

Water facilities

40-555(1)  


You cannot deduct an amount for any income year for capital expenditure on the acquisition of a * water facility if any entity has deducted or can deduct an amount under this Subdivision for any income year for earlier capital expenditure on:


(a) the construction or manufacture of the facility; or


(b) a previous acquisition of the facility.

Note:

A depreciating asset and a repair of a capital nature or an alteration, addition or extension to that asset that is a water facility are not the same depreciating asset for the purposes of section 40-50 and this Subdivision: see section 40-53 .

40-555(2)  
(Repealed by No 23 of 2005) Horticultural plants

40-555(3)  


In working out your deduction under this Subdivision for a * horticultural plant, disregard expenditure incurred:


(a) in draining swamp or low-lying land; or


(b) in clearing land.

Fodder storage assets

40-555(4)  


You cannot deduct an amount for any income year for capital expenditure on the acquisition of a *fodder storage asset if any entity has deducted or can deduct an amount under this Subdivision for any income year for earlier capital expenditure on:


(a) the construction or manufacture of the asset; or


(b) a previous acquisition of the asset.

Note:

A depreciating asset and a repair of a capital nature or an alteration, addition or extension to that asset that is a fodder storage asset are not the same depreciating asset for the purposes of section 40-50 and this Subdivision: see section 40-53 .

Fencing assets

40-555(5)  


You cannot deduct an amount for any income year for capital expenditure on the acquisition of a *fencing asset if any entity has deducted or can deduct an amount under this Subdivision for any income year for earlier capital expenditure on:


(a) the construction or manufacture of the fencing asset; or


(b) a previous acquisition of the fencing asset.

Note:

A depreciating asset and a repair of a capital nature or an alteration, addition or extension to that asset that is a fencing asset are not the same depreciating asset for the purposes of section 40-50 and this Subdivision: see section 40-53 .

40-555(6)  


You cannot deduct an amount for any income year for capital expenditure on a *fencing asset to the extent that any entity has deducted or can deduct the amount under subsection 40-630(1) (about landcare operations).

40-555(7)  


You cannot deduct an amount for any income year for capital expenditure on a *fencing asset if the fencing asset is (or is a repair, alteration, addition or extension to):


(a) a stockyard or pen; or


(b) a portable fence.


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