Commonwealth Numbered Acts

INCOME TAX ASSESSMENT ACT 1997 No. 38 of 1997 - SECT 40.20

(1) You work out the amount of your deduction for each income year by
dividing:
. the amount of expenditure you incurred; by:
. the length of the write off period, in income years.

For each amount of expenditure that qualified for a *capital allowance in a
given income year, you get a deduction every income year until the write off
period is over. Example: You spend $10,000 on preparing a mining site for
mining operations. In this example, assume the write off period for mining is
10 years. You may deduct $1,000 for that income year and for each of the next
9 income years.

(2) The rules for some of the *capital allowances are more complicated, but
they all have this general theme.