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INCOME TAX ASSESSMENT ACT 1997

CHAPTER 2 - LIABILITY RULES OF GENERAL APPLICATION  

PART 2-10 - CAPITAL ALLOWANCES: RULES ABOUT DEDUCTIBILITY OF CAPITAL EXPENDITURE  

Division 40 - Capital allowances    View history reference

Subdivision 40-I - Capital expenditure that is deductible over time    View history reference

Operative provisions

SECTION 40-860  Meaning of mining capital expenditure  

 View history reference [330-85; 330-90; 330-95]

40-860(1)  

Mining capital expenditure is capital expenditure you incur:


(a) in carrying on *mining and quarrying operations; or
 View history reference


(b) in preparing a site for those operations; or


(c) on buildings or other improvements necessary for you to carry on those operations; or


(d) in providing, or in contributing to the cost of providing:


(i) water, light or power for use on the site of those operations; or

(ii) access to, or communications with, the site of those operations; or


(e) on buildings for use directly in connection with operating or maintaining *plant that is primarily and principally for *treating *minerals, or quarry materials, that you obtain by carrying on such operations; or


(f) on buildings or other improvements for use directly in connection with storing minerals or quarry materials or to facilitate *minerals treatment of them (whether the storage happens before or after the treatment).

40-860(2)  

 View history reference
Capital expenditure you incur on *housing and welfare in carrying on *mining and quarrying operations (except quarrying operations) is also mining capital expenditure, but only if:


(a) for residential accommodation - the accommodation is provided by you, on or adjacent to a site where you carry on those operations, for the use of:


(i) your employees, or someone else's employees, who are employed or engaged in those operations, or in operations of yours that are connected with those operations; or

(ii) dependants of such employees; or


(b) for health, education, recreation or other similar facilities, or facilities for meals - the facilities:


(i) are on or adjacent to a site where you carry on those operations, and are principally for the benefit of the employees or dependants covered by paragraph (a); and

(ii) are not run for profit by any person, except in the case of facilities for meals (which may be run for profit); or


(c) in the case of works, including works for providing water, light, power, access or communications - the works are carried out directly in connection with the accommodation or facilities covered by this section.

40-860(3)  

However, expenditure on these is not mining capital expenditure:


(a) railway lines, roads, pipelines or other facilities, for use wholly or partly for transporting *minerals or quarry materials, or their products, other than facilities used for transport wholly within the site of *mining and quarrying operations you carry on;
 View history reference


(b) works carried out in connection with, or buildings or other improvements constructed or acquired for use in connection with, establishing, operating or using a port facility or other facility for ships;


(c) an office building that is not at or adjacent to the site of mining and quarrying operations you carry on;
 View history reference


(d) *housing and welfare in relation to quarrying operations.


 



This information is provided by CCH Australia Limited. View the disclaimer and notice of copyright.
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