Income Tax Assessment Act 1997



Division 40 - Capital allowances  

Subdivision 40-H - Capital expenditure that is immediately deductible  

Operative provisions

SECTION 40-735   Deduction for expenditure on mining site rehabilitation  

You can deduct for an income year expenditure you incur in that year to the extent it is on * mining site rehabilitation of:

(a) a site on which you:

(i) carried on * mining and quarrying operations; or

(ii) conducted * exploration or prospecting; or

(iii) conducted * ancillary mining activities; or

(b) a * mining building site.

Note 1:

If an amount of the expenditure is recouped, the amount may be included in your assessable income: see Subdivision 20-A .

Note 2:

If Division 250 applies to you and an asset that is land:

  • (a) if section 250-150 applies - you cannot deduct expenditure you incur in relation to the land to the extent specified under subsection 250-150(3) ; or
  • (b) otherwise - you cannot deduct such expenditure.
  • 40-735(2)  
    However, a provision of this Act (except Division 8 (which is about deductions)) that expressly prevents or restricts the operation of that Division applies in the same way to this section.

    However, you cannot deduct expenditure under subsection (1) to the extent that it forms part of the * cost of a * depreciating asset.


    Mining site rehabilitation is an act of restoring or rehabilitating a site or part of a site to, or to a reasonable approximation of, the condition it was in before * mining and quarrying operations, * exploration or prospecting or * ancillary mining activities were first started on the site, whether by you or by someone else.

    Partly restoring or rehabilitating such a site counts as mining site rehabilitation (even if you had no intention of completing the work).

    For a * mining building site, the time when * ancillary mining activities were first started on the site is the earliest time when the buildings, improvements or * depreciating assets concerned were located on the site.


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