Private ruling: Deductibility of fee paid on disposal of permits
Date of advice: 10 March 2026
Published: 28 April 2026

Ruling: Q1: Is the payment of the fee under the deed, deductible under section 8-1 of the Income Tax Assessment Act 1997 (ITAA 1997) when paid by ACo? | A1: No. | Q2: If the answer to Question 1 is "no", is the payment of the fee under the deed deductible under section 40-735 of the ITAA 1997 as expenditure incurred on mining site rehabilitation? | A2: No. | Q3: If the answer to Question 1 and 2 is "no", is the fee under the deed included as a cost base (or reduced cost base) of a CGT asset under section 110-25 (or section 110-55) of the ITAA 1997? | A3: Yes. | Q4: If the answer to Question 1, 2 and 3 is "no", is the payment of the fee under the deed included as a second element cost of a depreciating asset in accordance with paragraph 40-190(2)(b) of the ITAA 1997? | A4: Not applicable as the answer to Question 3 is "Yes". | Q5: If the answer to Question 1, 2, 3 and 4 are "no", is the fee under the deed deductible under section 40-880 of the ITAA 1997? | A5: Not applicable as the answer to Question 3 is "Yes".