Commonwealth Numbered Acts

INCOME TAX ASSESSMENT ACT 1997 No. 38 of 1997 - SECT 43.20

Buildings

(1) This Division applies to capital works being a building, or an extension,
alteration or improvement to a building:

   (a)  begun in Australia after 21 August 1979; or

   (b)  begun outside Australia after 21 August 1990. Note: Section 43-80
        explains when capital works begin.

Structural improvements

(2) This Division also applies to capital works (other than capital works
referred to in subsection (1)) begun after 26 February 1992 that are
structural improvements, or extensions, alterations or improvements to
structural improvements, whether they are in or outside Australia.

(3) Some examples of structural improvements are:

   (a)  sealed roads, sealed driveways, sealed car parks, sealed airport
        runways, bridges, pipelines, lined road tunnels, retaining walls,
        fences, concrete or rock dams and artificial sports fields; and

   (b)  earthworks that are integral to the construction of a structural
        improvement (other than a structural improvement described in
        subsection (4)), for example, embankments, culverts and tunnels
        associated with a runway, road or railway.

(4) This Division does not apply to structural improvements being:

   (a)  earthworks that:

        (i)    are not integral to the installation or construction of a
               structure; and

        (ii)   are permanent (assuming they are maintained in reasonably good
               order and condition); and

        (iii)  can be economically maintained in reasonably good order and
               condition for an indefinite period; for example, unlined
               channels, unlined basins, earth tanks and dirt tracks; or

   (b)  earthworks that merely create artificial landscapes, for example,
        grass golf course fairways and greens, gardens, and grass sports
        fields.

Environment protection earthworks

(5) This Division also applies to capital works being earthworks, or
extensions, alterations or improvements to earthworks, if:

   (a)  they are constructed as a result of carrying out an eligible
        environment protection activity within the meaning of section 82BM of
        the Income Tax Assessment Act 1936; and

   (b)  they can be economically maintained in reasonably good order and
        condition for an indefinite period; and

   (c)  they are not integral to the construction of capital works; and

   (d)  the expenditure on the capital works was incurred after 18 August
        1992. Note: This subsection allows you to deduct an amount for some
        earthworks that are excluded by paragraph (4)(a) if the earthworks are
        constructed in carrying out an eligible environment protection
        activity.