(1) You can deduct expenditure you incur in an income year for the sole or dominant purpose of carrying on * environmental protection activities.
Note: If Division 250 applies to you and an asset that is land:
(a) if section 250-150 applies--you cannot deduct expenditure you incur in relation to the land to the extent specified under subsection 250-150(3); or
(b) otherwise--you cannot deduct such expenditure.
(2) Environmental protection activities are any of the following activities that are carried on by or for you:
(a) preventing, fighting or remedying:
(i) pollution resulting, or likely to result, from * your earning activity; or
(ii) pollution of or from the site of your earning activity; or
(iii) pollution of or from a site where an entity was carrying on any * business that you have acquired and carry on substantially unchanged as your earning activity;
(b) treating, cleaning up, removing or storing:
(i) waste resulting, or likely to result, from your earning activity; or
(ii) waste that is on or from the site of * your earning activity; or
(iii) waste that is on or from a site where an entity was carrying on any business that you have acquired and carry on substantially unchanged as your earning activity.
No other activities are environmental protection activities.
(3) Your earning activity is an activity you carried on, carry on, or propose to carry on:
(a) for the * purpose of producing assessable income for an income year (except a * net capital gain); or
(b) for the purpose of * exploration or prospecting; or
(c) for the purpose of * mining site rehabilitation; or
(d) for purposes that include one or more of those purposes.
(4) If * your earning activity is:
(a) leasing a site you own; or
(b) granting a * right to use a site you own or control; or
(c) a similar activity involving a site;
that site is taken to be the site of your earning activity.
Note: This means you can deduct your expenditure on environmental protection activities relating to the site, even if the pollution or waste is caused by another entity that uses the site.