Taxation Laws Amendment Act (No. 3) 1992 (98 of 1992)

Part 2   AMENDMENT OF THE INCOME TAX ASSESSMENT ACT 1936

Division 10   Amendments relating to deductions for capital expenditure on income-producing structural improvements

56   Before section 124ZG

Before section 124ZG of the Principal Act the following section is inserted:

Division has effect as if certain structural improvements were buildings (Structural improvements to which this section applies)

"124ZFB.(1) This section applies to a structural improvement if:

(a) apart from this section, the structural improvement is not a building; and

(b) the structural improvement does not consist of earthworks that:

(i) are not reasonably likely to require replacement because of physical deterioration (assuming that the earthworks are maintained in reasonably good order and condition); and

(ii) can be economically maintained in reasonably good order and condition for an indefinite period; and

(iii) are not integral to the construction of things that, apart from this paragraph, are structural improvements to which this section applies;

(for example: unlined channels; unlined basins; earth tanks; and dirt tracks); and

(c) the structural improvement does not consist of earthworks that merely create artificial landscapes (for example: grass golf course fairways and greens; gardens; and grass sports fields).

(Examples of structural improvements to which this section applies)

"(2) The following are examples of structural improvements to which this section applies:

(a) sealed roads, sealed driveways or sealed car parks;

(b) bridges;

(c) sealed airport runways;

(d) pipelines;

(e) lined road tunnels;

(f) retaining walls;

(g) fences;

(h) concrete or rock dams;

(i) artificial sports fields.

(Structural improvements deemed to be buildings)

"(3) This Division has effect as if the structural improvement were a building.

(Application of section - post-26 February 1992 structural improvements)

"(4) This section applies in relation to expenditure incurred in respect of the construction of a structural improvement, or an extension, alteration or improvement to a structural improvement, if the construction commenced after 26 February 1992.".