Income Tax Assessment Act 1997

CHAPTER 2 - LIABILITY RULES OF GENERAL APPLICATION  

PART 2-10 - CAPITAL ALLOWANCES: RULES ABOUT DEDUCTIBILITY OF CAPITAL EXPENDITURE  

Division 40 - Capital allowances  

Subdivision 40-G - Capital expenditure of primary producers and other landholders  

Operative provisions

SECTION 40-645   Electricity and telephone lines  

40-645(1)    
You can deduct amounts for capital expenditure you incur on * connecting power to land or upgrading the connection if, when you incur the expenditure:


(a) you have an interest in the land or are a share-farmer carrying on a * business on the land; and


(b) you or another entity intends to use some or all of the electricity to be supplied as a result of the expenditure in carrying on a business on the land for a * taxable purpose at a time when you have an interest in the land or are a share-farmer carrying on a business on the land.

40-645(2)    
You can also deduct amounts for capital expenditure you incur on a telephone line on or extending to land if, when you incurred the expenditure:


(a) a * primary production business was carried on the land; and


(b) you had an interest in the land or you were a share-farmer carrying on a primary production business on the land.

40-645(3)    
The amount you can deduct is 10% of the expenditure:


(a) for the income year in which you incur it; and


(b) for each of the next 9 income years.

Note 1:

Various provisions may reduce the amount you can deduct or stop you deducting. For example, see:

  • • Division 26 (limiting deductions generally); and
  • • section 40-650 (specifying expenditure you cannot deduct under this Subdivision); and
  • • Division 245 (which may affect your entitlement to a deduction if your debts are forgiven).
  • Note 2:

    If you recoup an amount of the expenditure, the amount will be included in your assessable income. See Subdivision 20-A .



     

    Disclaimer and notice of copyright applicable to materials provided by CCH Australia Limited

    CCH Australia Limited ("CCH") believes that all information which it has provided in this site is accurate and reliable, but gives no warranty of accuracy or reliability of such information to the reader or any third party. The information provided by CCH is not legal or professional advice. To the extent permitted by law, no responsibility for damages or loss arising in any way out of or in connection with or incidental to any errors or omissions in any information provided is accepted by CCH or by persons involved in the preparation and provision of the information, whether arising from negligence or otherwise, from the use of or results obtained from information supplied by CCH.

    The information provided by CCH includes history notes and other value-added features which are subject to CCH copyright. No CCH material may be copied, reproduced, republished, uploaded, posted, transmitted, or distributed in any way, except that you may download one copy for your personal use only, provided you keep intact all copyright and other proprietary notices. In particular, the reproduction of any part of the information for sale or incorporation in any product intended for sale is prohibited without CCH's prior consent.