INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART III - LIABILITY TO TAXATION  

Division 3 - Deductions  

Subdivision A - General  

SECTION 53AA   PAYMENT FOR NON-COMPLIANCE WITH COVENANT TO REPAIR  

53AA(1)   [Payment is allowable deduction to lessee]  

Where:

(a) a taxpayer (in this section referred to as ``the lessee'' ) holds or has held a lease of land that is or was used by him for the purpose of producing assessable income or carrying on a business for that purpose;

(b) under the lease, the lessee is or was under an obligation to make repairs (including repairs by way of painting) to any improvements on the leased land;

(c) by reason of non-performance of that obligation the lessee has become liable to pay to the person, or a successor in title of the person, who granted the lease (in this section referred to as ``the lessor'' ) an amount of money by way of indemnity, compensation or damages; and

(d) that amount, or a part of that amount, is paid to the lessor by, or recovered by the lessor from, the lessee,

the amount so paid or recovered shall be an allowable deduction to the lessee in respect of the year of income in which it is paid or recovered.

53AA(2)   [No application 1997/98 income year onwards]  

This section does not apply to the 1997-98 year of income or a later year of income.

Note:

Section 25-15 (Amount paid for lease obligation to repair) of the Income Tax Assessment Act 1997 deals with the deductibility of amounts paid pursuant to lease obligations to repair premises.