Commonwealth Consolidated Acts

[Index] [Table] [Search] [Search this Act] [Notes] [Noteup] [Previous] [Next] [Download] [Help]

INCOME TAX ASSESSMENT ACT 1997 - SECT 43.140

Using your area in a deductible way

  (1)   The following table sets out the way you must use * your area in an income year for a deduction to be allowed under section   43 - 10 (the main deduction provision). The relevant use depends on the time when the capital works began (Column 1) and the type of capital works (Column 2). Column 3 sets out the use.

 

Table 43 - 140--Current year use

Column 1

Date capital works begin

Column 2

Type of capital works

Column 3

Use of your area at some time in the income year

Time period 1:

After 30/6/97

Any capital works

You use * your area for the purpose of:

(a)   producing assessable income; or

(b)   conducting * R&D activities.

Time period 2:

27/2/92 to 30/6/97 (inclusive)

* Hotel building

You use * your area for the * purpose of producing assessable income.

 

* Apartment building

You use * your area for the * purpose of producing assessable income.

 

Other capital works

You use * your area for the purpose of:

(a)   producing assessable income; or

(b)   conducting * R&D activities.

Time period 3:

Before 27/2/92

* Hotel building

You use * your area for the * purpose of producing assessable income and:

(a)   all or part of that area is used by any entity wholly or mainly to operate a hotel, motel or guest house; and

(b)   that hotel, motel or guest house has at least 10 bedrooms that are used or available for use wholly to provide short - term accommodation for travellers.

 

* Apartment building

You use * your area for the * purpose of producing assessable income and:

(a)   that area is, is part of or contains an apartment, unit or flat that is used or available for use by any entity wholly to provide short - term accommodation for travellers, and you own or lease at least 9 other apartments, units or flats in the building that are used or available for use by any entity wholly to provide short - term accommodation for travellers; or

(b)   that area is, is part of or contains a facility that is used or available for use by any entity wholly or mainly in association with providing short - term accommodation for travellers in apartments, units or flats in the building that are used in the way described in paragraph   (a).

 

Other capital works

You use * your area for the purpose of:

(a)   producing assessable income; or

(b)   conducting * R&D activities.

Note 1:   There are special rules that explain or qualify the uses described in Column 3 of this Table. These rules are set out in Subdivision   43 - E (sections   43 - 155 to 43 - 195). For example:

  Your area is taken to be used, for use or available for use for a purpose or in a way if it is maintained ready for use for that purpose or in that way. See section   43 - 160.

  R&D activities must be conducted in connection with a business carried on for the purpose of producing assessable income, see section   43 - 195.

Note 2:   If Division   250 applies to you and an asset that is a capital work:

(a)   if section   250 - 150 applies--you are taken not to be using the capital work for the purpose of producing assessable income, or for the purpose of conducting R&D activities, to the extent specified under subsection   250 - 150(3); or

(b)   otherwise--you are taken not to be using the capital work for such a purpose.

  (2)   This Division applies to an entity as if the entity used property for the * purpose of producing assessable income if the entity uses the property for:

  (a)   * environmental protection activities; or

  (b)   the environmental impact assessment of a project;

unless a provision of this Act expressly provides that that use is not for the purpose of producing assessable income.


AustLII: Copyright Policy | Disclaimers | Privacy Policy | Feedback