Your area is taken to be used for a particular purpose or manner if:
- it is maintained ready for that use, was not used for another purpose and its use had not been abandoned, or
- its use has temporarily ceased because of, for example, construction or repairs or seasonal or climatic conditions.
Your area is not accepted as being used to produce assessable income if:
- it is used for exhibition or display in connection with the sale of all or part of any building - other than a hotel or apartment building - and where construction began after 17 July 1985 but before 1 July 1997. If construction started after 30 June 1997, buildings that are used for display are eligible
- it is used:
- wholly or mainly for residential accommodation, or
- for exhibition or display in connection with the sale of all or part of any building, or the lease of all or part of the building for use wholly or mainly for, or in association with, residential accommodation, and the building construction began after 19 July 1982 and before 18 July 1985, or
- the fund uses it for residential accommodation - and it is not a hotel or apartment building. See subsection 43-170(2) of the ITAA 1997 for exceptions to this rule.
Your area is taken to be used as residential accommodation if it is:
- part of an individual's home - other than a hotel or apartment building, or
- used as a hotel, motel or guest house but does not satisfy the definition of a hotel building.
Special rules for hotel and apartments are contained in section 43-180 of the ITAA 1997.