The fund can deduct expenditure for the construction of capital works if there is a construction expenditure area for the capital works.
Whether there is such an area and how it is identified depends on:
- the type of expenditure incurred
- the time the capital works commenced
- the area of the capital works to be owned, leased or held by the entity that incurred the expenditure
- for capital works begun before 1 July 1997, the area of the capital works that was to be used in a particular manner, see section 43-90 of the ITAA 1997.