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-G - Undeducted construction expenditure  

Operative provisions

SECTION 43-240   Pre-27 February 1992 undeducted construction expenditure  



Step 1

Calculate for each day in the use period the amount worked out using the formula:


Your CE   ×   Applicable rate
365

where:

your CE is * your construction expenditure.

applicable rate is:

  • (a) 0.04 if the capital works began after 21 August 1984 and before 16 September 1987; or
  • (b) 0.025 in any other case.
  • Note:

    For the purpose of working out the applicable rate, capital works begun after 15 September 1987 are taken to have begun before 16 September 1987 in certain circumstances. See section 43-220 .


    Step 2

    Deduct the sum of the amounts calculated under Step 1 from * your construction expenditure. The result is the undeducted construction expenditure for * your area.


     

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