INCOME TAX (TRANSITIONAL PROVISIONS) ACT 1997 (ARCHIVE)

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-45 - RULES FOR PARTICULAR INDUSTRIES AND OCCUPATIONS  

Division 387 - Capital allowances for primary producers and some land-holders  

Subdivision 387-G - Forestry roads and timber mill buildings  

SECTION 387-470 (ARCHIVE)   Expenditure incurred before the 1997-98 income year  

387-470(1)    
The purpose of this section is to ensure that the amount of capital expenditure you must take into account for the purposes of working out the amount of a deduction under Subdivision 387-G of the Income Tax Assessment Act 1997 is the same as the amount of your capital expenditure taken into account as a basis for working out a deduction under section 124F or 124JA of the Income Tax Assessment Act 1936 .

387-470(2)    
This section applies if, before the 1997-98 income year, you incurred capital expenditure (the original expenditure ) on an access road or a timber mill building for which you did or can deduct an amount for an income year before the 1997-98 income year under section 124F or 124JA of the Income Tax Assessment Act 1936 .

387-470(3)    
For the purposes of Subdivision 387-G of the Income Tax Assessment Act 1997 :

(a) you are taken to have incurred an amount (the base amount ) of capital expenditure on the road or building equal to:

(i) what was your residual capital expenditure for the road or building for the purposes of section 124F or 124JA of the Income Tax Assessment Act 1936 immediately after you incurred the original expenditure; or

(ii) if you incurred the original expenditure before the first income year for which you could deduct an amount for it - what was your residual capital expenditure for the road or building for the purposes of section 124F or 124JA of that Act at the start of that first income year; and

(b) you are taken to have incurred the base amount:

(i) when you incurred the original expenditure; or

(ii) if you incurred the original expenditure before the first income year for which you could deduct an amount for it - at the start of that first income year.

Note:

Your residual capital expenditure mentioned in subparagraph (3)(a)(i) will equal your capital expenditure (as affected by section 124H or 124JC of the Income Tax Assessment Act 1936 ) if you incurred the original expenditure on construction of an access road after the 1955-56 income year, or on construction of a timber mill building after the 1962-63 income year.

387-470(4)    
Despite subsection (3), if before the 1997-98 income year:

(a) you incurred capital expenditure on constructing or acquiring an access road for which you did or can deduct an amount under section 124F of the Income Tax Assessment Act 1936 ; and

(b) you stopped using the road for the purpose for which it was primarily and principally constructed; and

(c) you started using the road again for that purpose;

you are taken to have incurred an amount of capital expenditure on the road equal to the amount described in subsection 124F(4) of that Act in the income year in which you started using the road again.