INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART III - LIABILITY TO TAXATION  

Division 3 - Deductions  

Subdivision B - Development allowance  

SECTION 82AA   PROPERTY TO WHICH SUBDIVISION APPLIES  

82AA(1)   [Eligible property]  

Subject to the following provisions of this Subdivision, this Subdivision applies in relation to a unit of eligible property acquired or constructed by the taxpayer that is -

(a) in the case of any taxpayer, for use by the taxpayer wholly and exclusively -

(i) in Australia; and

(ii) for the purpose of producing assessable income otherwise than by -

(A) the leasing of the eligible property;

(B) the letting of the eligible property on hire under a hire-purchase agreement; or

(C) the granting to other persons of rights to use the eligible property; or

(b) in the case of a taxpayer being a leasing company, for use wholly and exclusively -

(i) in Australia; and

(ii) for the purpose of producing assessable income,

by another person to whom the taxpayer has, on or after 27 February 1992, leased the eligible property under a long-term lease agreement that was entered into by the taxpayer in the course of carrying on business in Australia and was so entered into by the taxpayer and the other person at arm's length.

82AA(2)   [Property used in entertainment/tourism operations]  

Sub-subparagraphs (1)(a)(ii)(A) and (C) do not apply if the taxpayer leases the property, or grants rights to use the property, in the taxpayer's capacity as an eligible entertainment/tourism operator.

82AA(3)   [Use of property by related company]  

If the taxpayer is a company:

(a) sub-subparagraph (1)(a)(ii)(A) does not apply to the leasing of eligible property to a related company for use wholly and exclusively in Australia; and

(b) sub-subparagraph (1)(a)(ii)(C) does not apply to the granting of rights to a related company to use eligible property wholly and exclusively in Australia;

if the use is to take place while the related company remains a related company and is to be wholly and exclusively for the purpose of producing assessable income other than by leasing the property or otherwise granting a right to another person to use the property.

82AA(4)