• Legal database
Legal database

Income Tax Assessment Act 1997

CHAPTER 2 - LIABILITY RULES OF GENERAL APPLICATION  

PART 2-10 - CAPITAL ALLOWANCES: RULES ABOUT DEDUCTIBILITY OF CAPITAL EXPENDITURE  

Division 43 - Deductions for capital works  

Subdivision 43-D - Deductible uses of capital works  

Operative provisions

SECTION 43-140   Using your area in a deductible way  

43-140(1)  

View history reference

The following table sets out the way you must use * your area in an income year for a deduction to be allowed under section 43-10 (the main deduction provision). The relevant use depends on the time when the capital works began (Column 1) and the type of capital works (Column 2). Column 3 sets out the use.
TABLE 43-140 - Current year use


Column 1 Column 2 Column 3
Date capital works begin Type of capital works Use of your area at some time in the income year
Time period 1: After 30/6/97 Any capital works You use *your area for the purpose of:
(a) producing assessable income; or
(b) conducting *R & D activities.
Time period 2: 27/2/92 to 30/6/97 (inclusive) *Hotel building You use *your area for the *purpose of producing assessable income.
*Apartment building You use *your area for the *purpose of producing assessable income.
Other capital works You use *your area for the purpose of:
(a) producing assessable income; or
(b) conducting *R & D activities.
Time period 3: Before 27/2/92 *Hotel building You use *your area for the *purpose of producing assessable income and:
(a) all or part of that area is used by any entity wholly or mainly to operate a hotel, motel or guest house; and
(b) that hotel, motel or guest house has at least 10 bedrooms that are used or available for use wholly to provide short-term accommodation for travellers.
*Apartment building You use *your area for the *purpose of producing assessable income and:
(a) that area is, is part of or contains an apartment, unit or flat that is used or available for use by any entity wholly to provide short-term accommodation for travellers, and you own or lease at least 9 other apartments, units or flats in the building that are used or available for use by any entity wholly to provide short-term accommodation for travellers; or
(b) that area is, is part of or contains a facility that is used or available for use by any entity wholly or mainly in association with providing short-term accommodation for travellers in apartments, units or flats in the building that are used in the way described in paragraph (a).
Other capital works You use *your area for the purpose of:
(a) producing assessable income; or
(b) conducting *R & D activities.

Note 1:

There are special rules that explain or qualify the uses described in Column 3 of this Table. These rules are set out in Subdivision 43-E (sections 43-155 to 43-195 ). For example:

  • • Your area is taken to be used, for use or available for use for a purpose or in a way if it is maintained ready for use for that purpose or in that way. See section 43-160 .
  • • R & D activities must be conducted in connection with a business carried on for the purpose of producing assessable income, see section 43-195 .
    • Note 2:

    If Division 250 applies to you and an asset that is a capital work:

  • (a) if section 250-150 applies - you are taken not to be using the capital work for the purpose of producing assessable income, or for the purpose of conducting R & D activities, to the extent specified under subsection 250-150(3) ; or
  • (b) otherwise - you are taken not to be using the capital work for such a purpose.

    •  View history note

    43-140(2)  

    View history reference

    This Division applies to an entity as if the entity used property for the * purpose of producing assessable income if the entity uses the property for:


    (a) * environmental protection activities; or


    (b) the environmental impact assessment of a project;

    unless a provision of this Act expressly provides that that use is not for the purpose of producing assessable income.

     View history note

    View surrounding sectionsView surrounding sectionsBack to top

    This information is provided by CCH Australia Limited Link opens in new window. View the disclaimer and notice of copyright.