Private ruling: Capital Allowances - Capital Works Deductions
Published: November 2013

Ruling: The ruling concerned the following: | 1. Will the building be classified as a 'depreciating asset' under section 40-30 of the Income Tax Assessment Act 1997 (ITAA 1997)? | 2. Will the expenditure incurred by the Company on the building fall within the definition of 'transport capital expenditure' under section 40-865 of the ITAA 1997? | 3. If the answer to Question 2 is 'Yes', will the expenditure on the building be excluded from the definition of 'construction expenditure' under subparagraph 43-70(2)(fa)(i) of the ITAA 1997? | 4. Where the answer to Question 3 is 'Yes', will subsection 40-45(2) of the ITAA 1997 apply to exclude the expenditure on the building from being deductible under Division 40 of the ITAA 1997? | Decision | The Commissioner ruled that: | 1. Yes. The building is classified as a 'depreciating asset' under section 40-30 of the ITAA 1997. | 2. Yes. The expenditure incurred by the Company on the building falls within the definition of 'transport capital expenditure' under section 40-865 of the ITAA 1997. | 3. Yes. The expenditure on the building is excluded from the definition of 'construction expenditure' under subparagraph 43-70(2)(fa)(i) of the ITAA 1997. | 4. No. Subsection 40-45(2) of the ITAA 1997 will not apply to exclude the expenditure on the building from being deductible under Division 40 of the ITAA 1997.