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-A - Key operative provisions  

Operative provisions

SECTION 43-20   Capital works to which this Division applies   Buildings

43-20(1)  


This Division applies to capital works being a building, or an extension, alteration or improvement to a building:


(a) begun in Australia after 21 August 1979; or


(b) begun outside Australia after 21 August 1990.

Structural improvements

43-20(2)  


This Division also applies to capital works (other than capital works referred to in subsection (1)) begun after 26 February 1992 that are structural improvements, or extensions, alterations or improvements to structural improvements, whether they are in or outside Australia.

43-20(3)  


Some examples of structural improvements are:


(a) sealed roads, sealed driveways, sealed car parks, sealed airport runways, bridges, pipelines, lined road tunnels, retaining walls, fences, concrete or rock dams and artificial sports fields; and


(b) earthworks that are integral to the construction of a structural improvement (other than a structural improvement described in subsection (4)), for example, embankments, culverts and tunnels associated with a runway, road or railway.

43-20(4)  


This Division does not apply to structural improvements being:


(a) earthworks that:


(i) are not integral to the installation or construction of a structure; and

(ii) are permanent (assuming they are maintained in reasonably good order and condition); and

(iii) can be economically maintained in reasonably good order and condition for an indefinite period;
for example, unlined channels, unlined basins, earth tanks and dirt tracks; or


(b) earthworks that merely create artificial landscapes, for example, grass golf course fairways and greens, gardens, and grass sports fields. Environment protection earthworks

43-20(5)  


This Division also applies to capital works being earthworks, or extensions, alterations or improvements to earthworks, if:


(a) they are constructed as a result of carrying out of *environmental protection activities; and


(b) they can be economically maintained in reasonably good order and condition for an indefinite period; and


(c) they are not integral to the construction of capital works; and


(d) the expenditure on the capital works was incurred after 18 August 1992.


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