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  

Using your area

SECTION 43-145   Using your area in the 4% manner  

43-145(1)    
You use a part of ^* your area in the 4% manner if you use it as described in the following Table. 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 43-145 - Use in the 4% manner

Column 1	Column 2	Column 3
Date capital works begin	Type of capital works	Use of a part of *your area at some time in the income year
Time period 1: After 30/6/97	Capital works that are buildings	You use the part of *your area for the *purpose of producing assessable income and:
		(a)	that part 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.
		You use the part of *your area for the *purpose of producing assessable income and:
		(a)	that part 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 part 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).
		You use the part of *your area for the *purpose of producing assessable income, and that part is used by any entity:
		(a)	wholly or mainly for *industrial activities; or
		(b)	to provide meal rooms, rest rooms, first aid rooms, change rooms or similar facilities that are wholly or mainly for use by:
			(i)	workers employed wholly or mainly to undertake the work directly involved in carrying out industrial activities; or
			(ii)	the immediate supervisors of those workers; or
		(c)	wholly or mainly as office accommodation for the immediate supervisors of those workers.
		You use the part of *your area in the *4% build to rent manner.
Time period 2: 27/2/92 to 30/6/97 (inclusive)	*Hotel building	You use the part of *your area for the *purpose of producing assessable income and:
		(a)	that part 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 the part of *your area for the *purpose of producing assessable income and:
		(a)	that part 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 part 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 buildings	You use the part of *your area for the *purpose of producing assessable income, and that part is used by any entity:
		(a)	wholly or mainly for *industrial activities; or
		(b)	to provide meal rooms, rest rooms, first aid rooms, change rooms or similar facilities that are wholly or mainly for use by:
			(i)	workers employed wholly or mainly to undertake the work directly involved in carrying out industrial activities; or
			(ii)	the immediate supervisors of those workers; or
		(c)	wholly or mainly as office accommodation for the immediate supervisors of those workers.

Note:

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 .

• A suite of rooms in a hotel building may be treated as one bedroom, see subsection 43-180(2) .

43-145(2)    

You use a part of *your area in the 4% build to rent manner if:

(a)    you use the part of your area for the *purpose of producing assessable income; and

(b)    that part is, or is part of, an *active build to rent development area (the eligible development ); and

(c)    if the *build to rent compliance period for each of the *dwellings in the eligible development has ended:

(i) no other entity is using the eligible development, or any part of the eligible development, for the purpose of producing assessable income; and

(ii) at each earlier time (if any) at which you or another entity used the eligible development, or any part of the eligible development, for the purpose of producing assessable income and at which the eligible development was an *active build to rent development, no other entity was using the eligible development, or any part of the eligible development, for the purpose of producing assessable income.

43-145(3)    

For the purposes of paragraph (2)(c) , disregard use of the eligible development, or any part of the eligible development, for the *purpose of producing assessable income by providing management services.