Income Tax Assessment Act 1997
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:
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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