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-H - Capital expenditure that is immediately deductible  

Operative provisions

SECTION 40-735   Deduction for expenditure on mining site rehabilitation  

40-735(1)  
You can deduct for an income year expenditure you incur in that year to the extent it is on * mining site rehabilitation of:


(a) a site on which you:


(i) carried on * mining and quarrying operations; or

(ii) conducted * exploration or prospecting; or

(iii) conducted * ancillary mining activities; or


(b) a * mining building site.

Note 1:

If an amount of the expenditure is recouped, the amount may be included in your assessable income: see Subdivision 20-A .

Note 2:

If Division 250 applies to you and an asset that is land:

  • (a) if section 250-150 applies - you cannot deduct expenditure you incur in relation to the land to the extent specified under subsection 250-150(3) ; or
  • (b) otherwise - you cannot deduct such expenditure.
  • 40-735(2)  
    However, a provision of this Act (except Division 8 (which is about deductions)) that expressly prevents or restricts the operation of that Division applies in the same way to this section.

    40-735(3)  
    However, you cannot deduct expenditure under subsection (1) to the extent that it forms part of the * cost of a * depreciating asset.

    40-735(4)  


    Mining site rehabilitation is an act of restoring or rehabilitating a site or part of a site to, or to a reasonable approximation of, the condition it was in before * mining and quarrying operations, * exploration or prospecting or * ancillary mining activities were first started on the site, whether by you or by someone else.

    40-735(5)  
    Partly restoring or rehabilitating such a site counts as mining site rehabilitation (even if you had no intention of completing the work).

    40-735(6)  
    For a * mining building site, the time when * ancillary mining activities were first started on the site is the earliest time when the buildings, improvements or * depreciating assets concerned were located on the site.


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