INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART III - LIABILITY TO TAXATION  

Division 10AAA - Transport of minerals and quarry materials  

Subdivision A - Transport of certain minerals  

SECTION 123B   DEDUCTION OF EXPENDITURE  

123B(1)   [Allowable deductions]  

Subject to sections 123BA and 123BB , where a taxpayer has incurred or incurs capital expenditure to which this Subdivision applies, then:

(a) in relation to so much of the expenditure as:

(i) was incurred on or before 17 September 1974;

(ii) was or is incurred after that date and before 1 July 1976 in pursuance of a contract made on or before 17 September 1974, being a contract under which property was to be acquired by, or work was to be performed for, the taxpayer; or

(iii) was or is incurred after 17 August 1976,

one-tenth of that expenditure is an allowable deduction from the assessable income of the first year of income after the year of income that ended on 30 June 1967 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 123A , and from the assessable income of each of the next 9 succeeding years of income; and

(b) in relation to so much of the expenditure as was or is incurred after 17 September 1974 and on or before 17 August 1976 (not being expenditure to which subparagraph (a)(ii) applies) - one-twentieth of that expenditure is an allowable deduction from the assessable income of the first year of income in which the facility in respect of which the expenditure was or is incurred was, after the incurring of the expenditure, used primarily and principally for a purpose referred to in section 123A , and from the assessable income of each of the next 19 succeeding years of income.

123B(1A)   [No operation 1997/98 year onwards]  

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.

123B(2)   [Disposal, loss, destruction or termination of use]  

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 123A 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.