INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART III - LIABILITY TO TAXATION  

Division 10C - Deductions for capital expenditure on traveller accommodation  

SECTION 124ZB   QUALIFYING EXPENDITURE  

124ZB(1)   [Amount of qualifying hotel expenditure]  

Subject to this section, where:

(a) a person has incurred expenditure of a capital nature in respect of the construction of a building or in respect of the construction of an extension, alteration or improvement to a building;

(b) at the time when that expenditure was incurred:

(i) the building or the extension, alteration or improvement, as the case may be, was to be owned or leased by that person; or

(ii) a part only of the building or of the extension, alteration or improvement, as the case may be, was to be owned or leased by that person;

(c) either:

(i) the building or the extension, alteration or improvement, as the case may be, commenced to be constructed after 21 August 1979 and before 18 July 1985 and construction of the building or of the extension, alteration or improvement, as the case may be, has been completed; or

(ii) the building or the extension, alteration or improvement, as the case may be, commenced to be constructed after 26 February 1992 and construction of the building or of the extension, alteration or improvement, as the case may be, has been completed;

(d) at the time of completion of construction of the building, or of the extension, alteration or improvement, as the case may be:

(i) in a case to which subparagraph (b)(i) applies:

(A) the building, or the extension, alteration or improvement, as the case may be, was for use (whether by that person or by another person or persons) wholly or principally for the purpose of operating a hotel, motel or guest house that, at that time, contained not fewer than 10 bedrooms that were for use wholly or principally for the provision of short-term accommodation for travellers; or

(B) a part (in this sub-subparagraph referred to as the relevant part ) of the building, or of the extension, alteration or improvement, as the case may be, was for use as mentioned in sub-subparagraph (A); or

(ii) in a case to which subparagraph (b)(ii) applies:

(A) the whole (in this sub-subparagraph referred to as the relevant part ) of the part of the building, extension, alteration or improvement, as the case may be, to which that subparagraph applies, was for use as mentioned in sub-subparagraph (i)(A); or

(B) a part (in this sub-subparagraph referred to as the relevant part ) of the part of the building, extension, alteration or improvement, as the case may be, to which that subparagraph applies was for use as mentioned in sub-subparagraph (i)(A),

then, for the purposes of this Division:

(e) in a case to which sub-subparagraph (d)(i)(A) applies - the amount of the capital expenditure referred to in paragraph (a) shall be taken to be an amount of qualifying hotel expenditure in respect of the building; and

(f) in a case to which sub-subparagraph (d)(i)(B), (ii)(A) or (ii)(B) applies - so much of the amount of the capital expenditure referred to in paragraph (a) as is attributable to the relevant part referred to in whichever of those sub-subparagraphs is applicable shall be taken to be an amount of qualifying hotel expenditure in respect of the building.

124ZB(2)   [Amount of qualifying apartment expenditure]  

Subject to this section, where:

(a) a person has incurred expenditure of a capital nature in respect of the construction of a building or in respect of the construction of an extension, alteration or improvement to a building;

(b) either:

(i) the building or the extension, alteration or improvement, as the case may be, commenced to be constructed after 21 August 1979 and before 18 July 1985 and construction of the building or of the extension, alteration or improvement, as the case may be, has been completed; or

(ii) the building or the extension, alteration or improvement, as the case may be, commenced to be constructed after 26 February 1992 and construction of the building or of the extension, alteration or improvement, as the case may be, has been completed;

(c) at the time of completion of construction of the building, or of the extension, alteration or improvement, as the case may be:

(i) the building consisted of 10 or more apartments, units or flats each of which was, at that time, for use wholly or principally for the provision of short-term accommodation for travellers;

(ii) the building consisted of:

(A) 10 or more apartments, units or flats each of which was, at that time, for use wholly or principally for the provision of short-term accommodation for travellers; and

(B) facilities wholly or principally for use in association with the provision of short-term accommodation for travellers in those apartments, units or flats;

(iii) a part of the building consisted of 10 or more apartments, units or flats each of which was, at that time, for use wholly or principally for the provision of short-term accommodation for travellers; or

(iv) a part of the building consisted of:

(A) 10 or more apartments, units or flats each of which was, at that time, for use wholly or principally for the provision of short-term accommodation for travellers; and

(B) facilities wholly or principally for use in association with the provision of short-term accommodation for travellers in those apartments, units or flats; and

(d) at the time when that expenditure was incurred:

(i) the building or the extension, alteration or improvement, as the case may be, was to be owned or leased by that person; or

(ii) a part only of the building or of the extension, alteration or improvement, as the case may be, was to be owned or leased by that person,

then, for the purposes of this Division:

(e) in a case to which subparagraph (c)(i) or (ii) applies and to which subparagraph (d)(i) applies - the amount of the capital expenditure referred to in paragraph (a) shall be taken to be an amount of qualifying apartment expenditure in respect of the building;

(f) in a case to which subparagraph (c)(i) or (ii) applies and to which subparagraph (d)(ii) applies - so much of the amount of the capital expenditure referred to in paragraph (a) as is attributable to the part of the building referred to in subparagraph (d)(ii) shall be taken to be an amount of qualifying apartment expenditure in respect of the building;

(g) in a case to which subparagraph (c)(iii) or (iv) applies and to which subparagraph (d)(i) applies - so much of the amount of the capital expenditure referred to in paragraph (a) as is attributable to the part of the building referred to in subparagraph (c)(iii) or (iv), as the case may be, shall be taken to be an amount of qualifying apartment expenditure in respect of the building; and

(h) in a case to which subparagraph (c)(iii) or (iv) applies and to which subparagraph (d)(ii) applies - so much of the amount of the capital expenditure referred to in paragraph (a) as is attributable to the part of the building referred to in subparagraph (c)(iii) or (iv), as the case may be, and is also attributable to the part of the building referred to in subparagraph (d)(ii) shall be taken to be an amount of qualifying apartment expenditure in respect of the building.

124ZB(3)   [Depreciable property]  

References in subsection (1) or (2) to expenditure of a capital nature incurred in respect of the construction of a building, or of an extension, alteration or improvement to a building, shall be read as not including references to expenditure in respect of any property in respect of which depreciation is allowable under section 54 .

124ZB(4)   [Eligible heritage conservation expenditure]  

References in subsection (1) or (2) to expenditure of a capital nature incurred in respect of the construction of a building, or of an extension, alteration or improvement to a building, are to be read as not applying to expenditure that is eligible heritage conservation expenditure within the meaning of Subdivision AAD of Division 17 .