Income Tax Assessment Act 1997
Note: A Commissioner ' s Remedial Power (CRP 2017/2) is relevant to this part of the tax law. Taxation Administration (Remedial Power - Small Business Restructure Roll-over) Determination 2017 (F2017L01687) modifies the operation of s 40-340 of the Income Tax Assessment Act 1997 and any other provisions of a taxation law whose operation is affected by the modified operation of s 40-340 in relation to an asset transferred under a small business restructure roll-over (item 8 of the table in s 40-340(1) ).
The operation of the relevant provisions is modified as follows:
If s 40-340 of ITAA 1997 provides for rollover relief in relation to a disposal of a depreciating asset because the condition in item 8 of the table in s 40-340(1) of ITAA 1997 is satisfied in relation to the asset, that section has effect as if it also provided that the disposal of the asset has no direct consequences under the income tax law (other than Div 40 of ITAA 1997).
The modification applies in respect of transfers on or after 8 May 2018.
An entity must treat a modification as not applying to it or any other entity if the modification would produce a less favourable result for it. The Commissioner is empowered by s 370-5 of Sch 1 to the Taxation Administration Act 1953 to make modifications, by legislative instrument, to ensure the law is administered to achieve its intended purpose or object.
Mining capital expenditure is capital expenditure you incur:
(a) in carrying on * mining and quarrying operations; or
(b) in preparing a site for those operations; or
(c) on buildings or other improvements necessary for you to carry on those operations; or
(d) in providing, or in contributing to the cost of providing:
(i) water, light or power for use on the site of those operations; or
(ii) access to, or communications with, the site of those operations; or
(e) on buildings for use directly in connection with operating or maintaining * plant that is primarily and principally for * treating * minerals, or quarry materials, that you obtain by carrying on such operations; or
(f) on buildings or other improvements for use directly in connection with storing minerals or quarry materials or to facilitate * minerals treatment of them (whether the storage happens before or after the treatment).
Capital expenditure you incur on * housing and welfare in carrying on * mining and quarrying operations (except quarrying operations) is also mining capital expenditure , but only if:
(a) for residential accommodation - the accommodation is provided by you, on or adjacent to a site where you carry on those operations, for the use of:
(i) your employees, or someone else's employees, who are employed or engaged in those operations, or in operations of yours that are connected with those operations; or
(ii) dependants of such employees; or
(b) for health, education, recreation or other similar facilities, or facilities for meals - the facilities:
(i) are on or adjacent to a site where you carry on those operations, and are principally for the benefit of the employees or dependants covered by paragraph (a); and
(ii) are not run for profit by any person, except in the case of facilities for meals (which may be run for profit); or
(c) in the case of works, including works for providing water, light, power, access or communications - the works are carried out directly in connection with the accommodation or facilities covered by this section.
However, expenditure on these is not mining capital expenditure :
(a) railway lines, roads, pipelines or other facilities, for use wholly or partly for transporting * minerals or quarry materials, or their products, other than facilities used for transport wholly within the site of * mining and quarrying operations you carry on;
(b) works carried out in connection with, or buildings or other improvements constructed or acquired for use in connection with, establishing, operating or using a port facility or other facility for ships;
(c) an office building that is not at or adjacent to the site of mining and quarrying operations you carry on;
(d) * housing and welfare in relation to quarrying operations.