Income Tax Assessment Act 1997

Calculate the amount worked out using the formula:

where:

portion of your CE is the portion of ^* your construction expenditure that is attributable to the part of ^* your area that you used in the ^* 4% manner.

days used is the number of days in the income year that:

(a) you owned or were the lessee of that part of ^* your area and used it in the ^* 4% manner; or

(b) you were the holder of that part of ^* your area under a ^* quasi-ownership right over land granted by an ^* exempt Australian government agency or an ^* exempt foreign government agency, and used that part of your area in the 4% manner.

Reduce the Step 1 amount by the extent to which the part referred to in Step 1 was used only partly for the ^* purpose of producing assessable income.

Note:

Calculate the amount worked out using the formula:

where:

portion of your CE is the portion of ^* your construction expenditure that is attributable to the part of ^* your area that you did not use in the ^* 4% manner but was used as described in Table 43-140 (Current year use).

days used is the number of days in the income year that:

(a) you owned or were the lessee of that part of ^* your area and used it in that manner; or

(b) you were the holder of that part of ^* your area under a ^* quasi-ownership right over land granted by an ^* exempt Australian government agency or an ^* exempt foreign government agency, and used that part of your area in that manner.

Reduce the Step 3 amount by the extent to which the part referred to in Step 3:

(a) for a ^* hotel building or ^* apartment building - was used only partly for the ^* purpose of producing assessable income; or

(b) for any other capital works - was used only partly for the purpose of ^* producing assessable income or conducting ^* R & D activities.

Add the Step 2 and Step 4 amounts.

The amount of your deduction is the lesser of your Step 5 amount or the ^* undeducted construction expenditure for ^* your area.