Commonwealth Numbered Regulations Commonwealth Numbered Regulations(1) For Step 5 of the residual pricing method, an included cost for a participant in an integrated GTL operation is a capital cost if:
(a) it is not a personal cost; and
(b) either:
(i) it was incurred before the production date; or
(ii) the unit of property for which it was incurred is a depreciating asset for section 40–30 of the Income Tax Assessment Act 1997 .
Example of application of subparagraph (1) (b) (i)
If a person incurs operating expenses before the production date, they are treated as capital costs for the purposes of these Regulations.
(2) For Step 5 of the residual pricing method, an included cost for a participant in an integrated GTL operation is an operating cost if:
(a) it is not a personal cost; and
(b) it is not a capital cost.
(3) A cost which is a capital cost only because of subparagraph (1) (b) (i) is taken to have been incurred on the 1 January of the year of tax in which it was incurred.
Note Costs that relate to a unit of property that is constructed over several years of tax are dealt with in regulation 33.