INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART III - LIABILITY TO TAXATION  

Division 10A - Timber operations and timber mill buildings  

Subdivision A - Timber operations  

SECTION 124F   DEDUCTION OF EXPENDITURE  

124F(1)   [Access road]  

Where a person, in connexion with the carrying on by him of timber operations for the purpose of gaining or producing assessable income, has incurred expenditure of a capital nature on an access road (not being expenditure in respect of which a deduction has been allowed or is allowable under a provision of the previous Act or of this Act, other than a provision of this Subdivision, or which has been or is taken into account in ascertaining the amount of an allowable deduction under such a provision), an amount ascertained in accordance with this section shall be an allowable deduction in respect of the expenditure.

124F(2)   [Amount of deduction]  

The deduction allowable is the amount ascertained by dividing the residual capital expenditure, as at the end of the year of income, ascertained in accordance with the succeeding provisions of this section, by:

(a) a number equal to the number of whole years, as at the end of the year of income, in the estimated period during which the access road will be used for the purpose for which it was primarily and principally constructed; or

(b) 25,

whichever number is the less.

124F(3)   [Residual capital expenditure]  

For the purposes of this section, but subject to subsections (4) and (5), the residual capital expenditure shall be ascertained by deducting from the amount of expenditure specified in subsection (1) any part of that expenditure which:

(a) has been allowed or is allowable as a deduction under this section from the assessable income of a year of income prior to the year of income; or

(b) was incurred on:

(i) property which has been disposed of or destroyed; or

(ii) property the use of which by the taxpayer for the purpose for which the access road was primarily and principally constructed has been otherwise terminated,

and has not been allowed and is not allowable as a deduction under this section from the assessable income of any year of income which ended before the year of income in which the disposal, destruction or termination of use took place.

124F(4)   [Access road re-used]  

Where property referred to in subparagraph (3)(b)(ii) again comes into use for the purpose for which the access road was primarily and principally constructed, the residual capital expenditure shall be deemed to be increased by so much of the expenditure on that property as the Commissioner determines.

124F(5)   [Expenditure prior to 1 July 1956]  

Where any of the expenditure specified in subsection (1) was incurred in a year of income prior to the year of income which commenced on 1 July 1956, the residual capital expenditure shall be deemed to be the amount that would have been the residual capital expenditure if the provisions of this Subdivision had applied to assessments in respect of income of that first-mentioned year of income and to assessments in respect of income of each subsequent year of income.