Income Tax Assessment Act 1997

CHAPTER 2 - LIABILITY RULES OF GENERAL APPLICATION  

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

Division 40 - Capital allowances  

Subdivision 40-I - Capital expenditure that is deductible over time  

Operative provisions

SECTION 40-840   Meaning of project amount  

40-840(1)    
An amount of * mining capital expenditure or * transport capital expenditure you incur is a project amount if:


(a) it does not form part of the * cost of a * depreciating asset you * hold or held; and


(b) you cannot deduct it under a provision of this Act outside this Subdivision; and


(c) it is directly connected with:


(i) for mining capital expenditure - carrying on the * mining and quarrying operations in relation to which the expenditure is incurred; or

(ii) for transport capital expenditure - carrying on the * business in relation to which the expenditure is incurred.

40-840(2)    
Another amount of capital expenditure you incur is also a project amount so far as:


(a) it does not form part of the * cost of a * depreciating asset you * hold or held; and


(b) you cannot deduct it under a provision of this Act outside this Subdivision; and


(c) it is directly connected with a project you carry on or propose to carry on for a * taxable purpose; and


(d) it is one of these:


(i) an amount paid to create or upgrade community infrastructure for a community associated with the project; or

(ii) an amount incurred for site preparation costs for depreciating assets (except, for * horticultural plants, in draining swamp or low-lying land or in clearing land); or

(iii) an amount incurred for feasibility studies for the project; or

(iv) an amount incurred for environmental assessments for the project; or

(v) an amount incurred to obtain information associated with the project; or

(vi) an amount incurred in seeking to obtain a right to * intellectual property; or

(vii) an amount incurred for ornamental trees or shrubs.


 

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