INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART III - LIABILITY TO TAXATION  

Division 10D - Deductions for capital expenditure on certain buildings and structural improvements  

SECTION 124ZFA   WHEN BUILDING USED IN ELIGIBLE INDUSTRIAL MANNER  

124ZFA(1)   Purposes of section.  

This section has effect for the purposes of the application of this Division in determining:

(a) the amount of any deduction allowable under section 124ZH or 124ZK ; or

(b) the amount of the residual capital expenditure;

in respect of an amount of qualifying expenditure in respect of a building other than a structural improvement that is taken to be a building because of section 124ZFB .

124ZFA(2)   Eligible industrial manner.  

A person is taken to have dealt with a part of a building in an eligible industrial manner at a particular time if, at that time:

(a) the person used that part of the building for the purpose of producing assessable income; and

(b) that part of the building was used (whether by that person or by another person):

(i) wholly or principally for eligible industrial activities; or

(ii) in the provision of meal rooms, rest-rooms, first-aid rooms, change-rooms or similar facilities wholly or principally for use by:

(A) workers employed wholly or principally to undertake the work directly involved in carrying out eligible industrial activities; or

(B) the immediate supervisors of those workers; or

(iii) wholly or principally as office accommodation for the immediate supervisors of those workers.

124ZFA(3)   Eligible industrial activities.  

A reference in this section to eligible industrial activities is a reference to:

(a) any of the following activities ( core activities ) carried on by a person:

(i) operations by means of which:

(A) manufactured goods are derived from other goods (including other manufactured goods) by the person or by other persons on whose behalf the person performs services; or

(B) manufactured goods manufactured by the person or by other persons are (otherwise than by packing, placing in containers or labelling) brought into or maintained in the form or condition in which they are sold or used by the person or by those other persons, as the case may be; or

(ii) the concentration of a metal or the treatment or processing of a metal after its concentration; or

(iii) in the case of a metal not requiring concentration - the application to the metal of a treatment or process which, if the metal had required concentration, would not have been applied until after the concentration;

(iv) the refining of petroleum;

(v) the scouring or carbonising of wool;

(vi) the milling of timber;

(vii) the freezing of primary products;

(viii) the operations of:

(A) printing; or

(B) lithographing; or

(C) engraving; or

(D) any similar process;

in the course of carrying on a business as a publisher, printer, lithographer or engraver;

(ix) the curing of meat or fish;

(x) the production of chilled or frozen meat;

(xi) the pasteurising of milk;

(xii) the canning or bottling of foodstuffs;

(xiii) the production of electric current, hydraulic power, steam, compressed air or gases (other than natural gas) for the purposes of:

(A) sale by the person; or

(B) use wholly or principally in carrying on an activity mentioned in any of the preceding subparagraphs of this paragraph; or

(b) any of the following activities carried on by a person:

(i) the packing, placing in containers or labelling of any goods resulting from the carrying on by the person of core activities;

(ii) the disposal of waste substances resulting from the carrying on by the person of core activities;

(iii) the cleansing or sterilising of bottles, vats or other containers used by the person to store:

(A) goods to be used by the person in carrying on core activities; or

(B) goods resulting from the carrying on by the person of core activities;

(iv) the assembly, maintenance, cleansing, sterilising or repair of property used by the person in carrying on core activities;

(v) the storage, within premises in which the taxpayer carries on core activities or premises contiguous to such premises, of:

(A) goods to be used by the person on carrying on core activities; or

(B) goods in relation to which the taxpayer has commenced, but not finally completed, the carrying on of core activities; or

(C) goods resulting from core activities carried on by the person;

but does not include the preparation of food or drink (whether for consumption on the premises where it is prepared or elsewhere) in, or in premises occupied in connection with:

(c) an hotel or motel; or

(d) a boarding house; or

(e) a catering establishment; or

(f) a restaurant, cafe, milk-bar or coffee shop; or

(g) a retail shop; or

(h) any similar establishment.

124ZFA(4)   Definitions.  

In this section:

concentration
, in relation to a metal, means the separation of the metal from its ore by any process, but does not include crushing, grinding, breaking, screening or sizing in order to enable or facilitate the carrying out of any such process.

eligible industrial activity
has the meaning given by subsection (3).

goods
includes:

(a) liquids, gases and substances; and

(b) ships and aircraft.

manufactured goods
includes goods manufactured for the purpose of use as parts or materials in the manufacture of other goods.

metal
includes a compound of a metal.