Commonwealth Consolidated Acts

INCOME TAX ASSESSMENT ACT 1997 - SECT 43.70

  (1)   Construction expenditure is capital expenditure incurred in respect of the construction of capital works.

  (2)   Construction expenditure does not include:

  (a)   expenditure on acquiring land; or

  (b)   expenditure on demolishing existing structures; or

  (c)   expenditure on clearing, levelling, filling, draining or otherwise preparing the construction site prior to carrying out excavation works; or

  (d)   expenditure on landscaping; or

  (e)   expenditure on * plant; or

  (f)   expenditure on property for which a deduction is allowable, or would be allowable if the property were for use for the * purpose of producing assessable income, under:

  (i)   Subdivision   40 - F (about primary production depreciating assets), Subdivision   40 - G (about capital expenditure of primary producers and other landholders), Subdivision   40 - H (about capital expenditure that is immediately deductible) or Subdivision   40 - I (about capital expenditure that is deductible over time); or

  (ii)   the former Division   330 of this Act or the former Division   10, 10AAA or 10AA of Part   III of the Income Tax Assessment Act 1936 (all of which dealt with mining and/or quarrying); or

  (iii)   section   73A of the Income Tax Assessment Act 1936 (about expenditure on scientific research); or

  (iv)   the former Subdivision   387 - A of this Act or the former section   75D of the Income Tax Assessment Act 1936 (both of which allowed deductions for capital expenditure to prevent land degradation); or

  (v)   the former Subdivision   387 - B of this Act or the former section   75B of the Income Tax Assessment Act 1936 (both of which allowed deductions for capital expenditure on facilities to conserve or convey water); or

  (vi)   the former Subdivision   387 - G of this Act or the former section   124F or 124JA of the Income Tax Assessment Act 1936 (all of which allowed deductions for capital expenditure on forestry roads and/or timber mill buildings); or

  (fa)   any of these kinds of expenditure if a deduction is allowable for the expenditure, or would be allowable if property had been used for the purpose of producing assessable income:

  (i)   * mining capital expenditure or * transport capital expenditure;

  (ii)   expenditure on a * forestry road in connection with carrying on a * timber operation for a * taxable purpose;

  (iii)   expenditure for the construction or acquisition of a * timber mill building;

  (iv)   expenditure on a * depreciating asset you can deduct under subsection   40 - 80(1) (about exploration and prospecting); or

  (g)   expenditure on property for which a deduction under section   355 - 305 or 355 - 520 is allowable for the property, or would be allowable if the property were for use for conducting * R&D activities; or

  (h)   eligible heritage conservation expenditure within the meaning of the former Subdivision AAD of Division   17 of Part   III of the Income Tax Assessment Act 1936 ; or

  (i)   expenditure that you cannot deduct because of section   26 - 100 (about water infrastructure improvement expenditure).