INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART III - LIABILITY TO TAXATION  

Division 10 - Mining and quarrying  

Subdivision B - Quarrying  

SECTION 122JC   ALLOWABLE CAPITAL EXPENDITURE  

122JC(1)   [Allowable expenditure]  

For the purposes of this Subdivision, allowable capital expenditure of a taxpayer is expenditure of a capital nature incurred by the taxpayer, being:


(a) expenditure in carrying on eligible quarrying operations, including expenditure:


(i) in preparing a site for such operations; or

(ii) on buildings or other improvements necessary for the carrying on by the taxpayer of such operations; or

(iii) in providing, or by way of contribution to the cost of providing, water, light or power for use on, or access to or communications with, the site of eligible quarrying operations carried on, or to be carried on, by the taxpayer; or


(b) expenditure on:


(i) buildings for use directly in connection with the operation or maintenance of plant, being plant for use primarily and principally in the treatment of quarry materials obtained from the carrying on by the taxpayer of eligible quarrying operations; or

(ii) buildings or other improvements for use directly in connection with the storage (whether before or after treatment) of quarry materials in relation to the operation of plant of the kind mentioned in subparagraph (i); or


(c) expenditure on acquiring:


(i) a quarrying or prospecting right from another person; or

(ii) quarrying or prospecting information from another person;
to the extent only of the amount of the expenditure that is specified in a notice under section 122JD given to the Commissioner by the taxpayer and that other person.

122JC(2)   [Plant or articles under s 54]  

Subsection (1) does not apply to expenditure on property, being plant or articles for the purposes of section 54 .

122JC(3)   [Housing and welfare]  

Subsection (1) does not apply to expenditure on housing and welfare.

122JC(4)   [Excluded expenditure]  

Without extending, by implication, the operation of subsection (1), the expenditure referred to in that subsection does not include expenditure incurred by the taxpayer on or in relation to:


(a) ships, railway rolling-stock or road vehicles, or railway lines, roads, pipelines or other facilities, for use wholly or partly for the purpose of the transport of quarry materials or products of quarry materials, other than transport wholly within the site of eligible quarrying operations carried on by the taxpayer; or


(b) works carried out in connection with, or buildings or other improvements or plant constructed or acquired for use in connection with, the establishment, operation or use of a port or other facilities for ships; or


(c) an office building that is not situated at or adjacent to the site of eligible quarrying operations carried on by the taxpayer.


 

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