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Edited version of private advice
Authorisation Number: 1051770916870
Date of advice: 22 October 2020
Ruling
Subject: Capital works deduction rate - industrial activities
Question
Are the activities undertaken by the Tenant at the Property considered to be 'industrial activities' under section 43-150 of the Income Tax Assessment Act 1997 (ITAA 1997)?
Answer
Yes.
A core activity undertaken by the Tenant at the Property, painting items, constitutes operations by which manufactured items (the items) are brought into or maintained in the form or condition in which they are sold or used, satisfying the meaning of industrial activity in subparagraph 43-150(a)(ii) of the ITAA 1997.
This ruling applies for the following period:
Year ending 30 June 20XX
The scheme commences on:
1 July 20XX
Relevant facts and circumstances
You purchased the Property with settlement June 20XX.
The Property is a tilt slab construction factory/warehouse approximately XXX square meters, built in 2018.
The Property was fist leased to a tenant (the Tenant) by the developer commencing January 20XX.
You purchased the Property with the Tenant as a going concern from the developer.
The Tenant, paints items, that are both newly manufactured and used.
Relevant legislative provisions
Section 43-150 of the Income Tax Assessment Act 1997.