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-I - Capital expenditure that is deductible over time  

Operative provisions

SECTION 40-840   Meaning of project amount  

40-840(1)    
An amount of ^* mining capital expenditure or ^* transport capital expenditure you incur is a project amount if:

(a) it does not form part of the ^* cost of a ^* depreciating asset you ^* hold or held; and

(b) you cannot deduct it under a provision of this Act outside this Subdivision; and

(c) it is directly connected with:

(i) for mining capital expenditure - carrying on the ^* mining and quarrying operations in relation to which the expenditure is incurred; or

(ii) for transport capital expenditure - carrying on the ^* business in relation to which the expenditure is incurred.

40-840(2)    
Another amount of capital expenditure you incur is also a project amount so far as:

(a) it does not form part of the ^* cost of a ^* depreciating asset you ^* hold or held; and

(b) you cannot deduct it under a provision of this Act outside this Subdivision; and

(c) it is directly connected with a project you carry on or propose to carry on for a ^* taxable purpose; and

(d) it is one of these:

(i) an amount paid to create or upgrade community infrastructure for a community associated with the project; or

(ii) an amount incurred for site preparation costs for depreciating assets (except, for ^* horticultural plants, in draining swamp or low-lying land or in clearing land); or

(iii) an amount incurred for feasibility studies for the project; or

(iv) an amount incurred for environmental assessments for the project; or

(v) an amount incurred to obtain information associated with the project; or

(vi) an amount incurred in seeking to obtain a right to ^* intellectual property; or

(vii) an amount incurred for ornamental trees or shrubs.