INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)
For the purposes of this Subdivision, but subject to subsection (2), the residual capital expenditure of a taxpayer as at the end of a year of income (in this section referred to as the relevant year of income ) shall be ascertained by deducting from the amount of allowable capital expenditure incurred by the taxpayer after 17 August 1976 and before the end of the relevant year of income being -
(a) expenditure incurred on or before 30 April 1981; or
(b) expenditure incurred after 30 April 1981 -
(i) under a contract entered into on or before 30 April 1981; or
(ii) in respect of the construction of property by the taxpayer where that construction commenced on or before 30 April 1981,
the sum of -
(c) any part of that allowable capital expenditure that -
(i) has been allowed or is allowable as a deduction under section 122DB from the assessable income of a year of income preceding the relevant year of income; or
(ii) was incurred on property (not being property in respect of which a notice has been duly given to the Commissioner under section 122B by the taxpayer and a person who acquired the property from the taxpayer) -
(A) that has been disposed of, lost or destroyed; orand has not been allowed and is not allowable as a deduction from the assessable income of any year of income that ended before the year of income in which the disposal, loss, destruction or termination of use took place; and
(B) the use of which by the taxpayer for prescribed purposes has been otherwise terminated,
(d) so much of any amounts specified in notices duly given to the Commissioner under section 122B in relation to the acquisition from the taxpayer, during the relevant year of income or a preceding year of income, of a mining or prospecting right or mining or prospecting information as is attributable to expenditure that would, but for this paragraph, be included in the residual capital expenditure of the taxpayer as at the end of the relevant year of income.
Where property referred to in sub-subparagraph (1)(c)(ii)(B) has, on or before 30 April 1981, come into use for purposes for which allowable capital expenditure may be incurred, so much of the capital expenditure incurred by the taxpayer on that property after 17 August 1976 and before the termination of use as the Commissioner determines shall, for the purposes of this section, be deemed to have been incurred, on the day on which the property so came into use, for the purposes for which the property so came into use.