Income Tax Assessment Act 1997

CHAPTER 2 - LIABILITY RULES OF GENERAL APPLICATION  

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

Division 43 - Deductions for capital works  

Subdivision 43-D - Deductible uses of capital works  

Operative provisions

SECTION 43-140   Using your area in a deductible way  

43-140(1)    

View history reference

The following table sets out the way you must use ^* your area in an income year for a deduction to be allowed under section 43-10 (the main deduction provision). The relevant use depends on the time when the capital works began (Column 1) and the type of capital works (Column 2). Column 3 sets out the use.

TABLE 43-140 - Current year use

Column 1	Column 2	Column 3
Date capital works begin	Type of capital works	Use of your area at some time in the income year
Time period 1: After 30/6/97	Any capital works	You use *your area for the purpose of:
		(a)	producing assessable income; or
		(b)	conducting *R & D activities.
Time period 2: 27/2/92 to 30/6/97 (inclusive)	*Hotel building	You use *your area for the *purpose of producing assessable income.
	*Apartment building	You use *your area for the *purpose of producing assessable income.
	Other capital works	You use *your area for the purpose of:
		(a)	producing assessable income; or
		(b)	conducting *R & D activities.
Time period 3: Before 27/2/92	*Hotel building	You use *your area for the *purpose of producing assessable income and:
		(a)	all or part of that area is used by any entity wholly or mainly to operate a hotel, motel or guest house; and
		(b)	that hotel, motel or guest house has at least 10 bedrooms that are used or available for use wholly to provide short-term accommodation for travellers.
	*Apartment building	You use *your area for the *purpose of producing assessable income and:
		(a)	that area is, is part of or contains an apartment, unit or flat that is used or available for use by any entity wholly to provide short-term accommodation for travellers, and you own or lease at least 9 other apartments, units or flats in the building that are used or available for use by any entity wholly to provide short-term accommodation for travellers; or
		(b)	that area is, is part of or contains a facility that is used or available for use by any entity wholly or mainly in association with providing short-term accommodation for travellers in apartments, units or flats in the building that are used in the way described in paragraph (a).
	Other capital works	You use *your area for the purpose of:
		(a)	producing assessable income; or
		(b)	conducting *R & D activities.

Note 1:

There are special rules that explain or qualify the uses described in Column 3 of this Table. These rules are set out in Subdivision 43-E (sections 43-155 to 43-195 ). For example:

• Your area is taken to be used, for use or available for use for a purpose or in a way if it is maintained ready for use for that purpose or in that way. See section 43-160 .

• R & D activities must be conducted in connection with a business carried on for the purpose of producing assessable income, see section 43-195 .

Note 2:

If Division 250 applies to you and an asset that is a capital work:

(a) if section 250-150 applies - you are taken not to be using the capital work for the purpose of producing assessable income, or for the purpose of conducting R & D activities, to the extent specified under subsection 250-150(3) ; or

(b) otherwise - you are taken not to be using the capital work for such a purpose.

 View history note

 Hide history note

History

S 43-140(1) amended by No 15 of 2017, s 3 and Sch 4 item 49, by substituting para (a) of note 2, effective 1 April 2017. Para (a) of note 2 formerly read:

(a) if section 250-150 applies - you are taken to be using the capital work for the purpose of producing assessable income, or for the purpose of conducting R & D activities, to the extent specified in a determination made under subsection 250-150(3); or

S 43-140(1) amended by No 93 of 2011, s 3 and Sch 3 items 34 to 36, by substituting " conducting *R & D activities " for " carrying on *research and development activities " (wherever occurring), substituting " R & D activities must be conducted " for " Research and development activities must be carried on " in note 1 and substituting " conducting R & D activities " for " carrying on research and development activities " in note 2, effective 8 September 2011. For application, savings and transitional provisions see note under Div 355 heading.

S 43-140(1) amended by No 164 of 2007 , s 3 and Sch 1 items 57 and 58, by inserting note 2, effective 25 September 2007.

43-140(2)    

View history reference

This Division applies to an entity as if the entity used property for the ^* purpose of producing assessable income if the entity uses the property for:

(a) ^* environmental protection activities; or

(b) the environmental impact assessment of a project;

unless a provision of this Act expressly provides that that use is not for the purpose of producing assessable income.

 View history note

 Hide history note

History

S 43-140(2) inserted by No 119 of 2002.

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.