Commonwealth Consolidated Acts

INCOME TAX ASSESSMENT ACT 1997 - SECT 40.860

  (1)   Mining capital expenditure is capital expenditure you incur:

  (a)   in carrying on * mining and quarrying operations; or

  (b)   in preparing a site for those operations; or

  (c)   on buildings or other improvements necessary for you to carry on those operations; or

  (d)   in providing, or in contributing to the cost of providing:

  (i)   water, light or power for use on the site of those operations; or

  (ii)   access to, or communications with, the site of those operations; or

  (e)   on buildings for use directly in connection with operating or maintaining * plant that is primarily and principally for * treating * minerals, or quarry materials, that you obtain by carrying on such operations; or

  (f)   on buildings or other improvements for use directly in connection with storing minerals or quarry materials or to facilitate * minerals treatment of them (whether the storage happens before or after the treatment).

  (2)   Capital expenditure you incur on * housing and welfare in carrying on * mining and quarrying operations (except quarrying operations) is also mining capital expenditure , but only if:

  (a)   for residential accommodation--the accommodation is provided by you, on or adjacent to a site where you carry on those operations, for the use of:

  (i)   your employees, or someone else's employees, who are employed or engaged in those operations, or in operations of yours that are connected with those operations; or

  (ii)   dependants of such employees; or

  (b)   for health, education, recreation or other similar facilities, or facilities for meals--the facilities:

  (i)   are on or adjacent to a site where you carry on those operations, and are principally for the benefit of the employees or dependants covered by paragraph   (a); and

  (ii)   are not run for profit by any person, except in the case of facilities for meals (which may be run for profit); or

  (c)   in the case of works, including works for providing water, light, power, access or communications--the works are carried out directly in connection with the accommodation or facilities covered by this section.

  (3)   However, expenditure on these is not mining capital expenditure :

  (a)   railway lines, roads, pipelines or other facilities, for use wholly or partly for transporting * minerals or quarry materials, or their products, other than facilities used for transport wholly within the site of * mining and quarrying operations you carry on;

  (b)   works carried out in connection with, or buildings or other improvements constructed or acquired for use in connection with, establishing, operating or using a port facility or other facility for ships;

  (c)   an office building that is not at or adjacent to the site of mining and quarrying operations you carry on;

  (d)   * housing and welfare in relation to quarrying operations.