Commonwealth Consolidated Acts

INCOME TAX ASSESSMENT ACT 1997 - SECT 43.210

    Step 1   Calculate the amount worked out using the formula:

where:

"portion of your CE" is the portion of * your construction expenditure that is attributable to the part of * your area that you used in the * 4% manner.

"days used" is the number of days in the income year that:

  (a)   you owned or were the lessee of that part of * your area and used it in the * 4% manner; or

  (b)   you were the holder of that part of * your area under a * quasi - ownership right over land granted by an * exempt Australian government agency or an * exempt foreign government agency, and used that part of your area in the 4% manner.

    Step 2   Reduce the Step 1 amount by the extent to which the part referred to in Step 1 was used only partly for the * purpose of producing assessable income.

Note:   This Step applies if:

•   part of your income from the part referred to in Step 1 is exempt income; or

•   part of the part referred to in Step 1 was not used for the purpose of producing assessable income or was not available for that use; or

•   the part of the part referred to in Step 1 was not used for such a purpose during a part of the days used period.

    Step 3   Calculate the amount worked out using the formula:

where:

"portion of your CE" is the portion of * your construction expenditure that is attributable to the part of * your area that you did not use in the * 4% manner but was used as described in Table 43 - 140 (Current year use).

"days used" is the number of days in the income year that:

  (a)   you owned or were the lessee of that part of * your area and used it in that manner; or

  (b)   you were the holder of that part of * your area under a * quasi - ownership right over land granted by an * exempt Australian government agency or an * exempt foreign government agency, and used that part of your area in that manner.

    Step 4   Reduce the Step 3 amount by the extent to which the part referred to in Step 3:

  (a)   for a * hotel building or * apartment building--was used only partly for the * purpose of producing assessable income; or

  (b)   for any other capital works--was used only partly for the purpose of * producing assessable income or conducting * R&D activities.

Note:   This Step applies if:

•   part of your income from the part referred to in Step 3 is exempt income; or

•   part of the part referred to in Step 3 was not used for the purpose of producing assessable income (or R&D activities) or was not available for that use; or

•   the part of the part referred to in Step 3 was not used for such a purpose during a part of the days used period.

    Step 5   Add the Step 2 and Step 4 amounts.

    Step 6   The amount of your deduction is the lesser of your Step 5 amount or the * undeducted construction expenditure for * your area.