Income Tax Assessment Act 1997

Step 1

Calculate for each day in the use period the amount worked out using the formula:

Portion of your CE × 0.04 365

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.

Step 2

Calculate for each day in the use period the amount worked out using the formula:

Portion of your CE × 0.025 365

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.

Step 3

Add the aggregate of the amounts calculated under Steps 1 and 2.

Step 4

Deduct the sum of those amounts from ^* your construction expenditure. The result is the undeducted construction expenditure for ^* your area.