INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART III - LIABILITY TO TAXATION  

Division 10AAA - Transport of minerals and quarry materials  

Subdivision B - Transport of quarry materials  

SECTION 123BE   DEDUCTION OF EXPENDITURE  

123BE(1)   [Allowable deduction]  

Subject to this Subdivision, where a taxpayer has incurred or incurs capital expenditure to which this Subdivision applies, 5% of that expenditure is an allowable deduction from:

(a) the assessable income of the first year of income after the year of income in which the facility in respect of which the expenditure was incurred was, after the incurring of the expenditure, used primarily and principally for a purpose referred to in section 123BD ; and

(b) the assessable income of each of the next 19 succeeding years of income.

123BE(1A)   [No application from 1997/98 year]  

A deduction is not allowable under subsection (1) for the 1997-98 year of income or any later year of income.

Note:

Section 330-60 of the Income Tax (Transitional Provisions) Act 1997 converts any capital expenditure to which this Subdivision applies that is undeducted at the end of the 1996-97 year of income into transport capital expenditure incurred by a taxpayer in the 1997-98 year of income.

123BE(2)   [Property disposed of, etc]  

Where capital expenditure to which this Subdivision applies was incurred on:

(a) property that is disposed of, lost or destroyed; or

(b) property the use of which by the taxpayer primarily and principally for a purpose referred to in section 123BD is otherwise terminated;

a deduction in respect of that expenditure is not allowable under this section from the assessable income of the year of income in which the disposal, loss, destruction or termination of use takes place or from the assessable income of any subsequent year of income.