Private ruling: Capital works deduction rate - industrial activities
Date of advice: 22 October 2020
Published: December 2020
Ruling period: Year ending 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Are the activities undertaken by the Tenant at the Property considered to be 'industrial activities' under section 43-150 of the Income Tax Assessment Act 1997 (ITAA 1997)? | A1: Yes. A core activity undertaken by the Tenant at the Property, painting items, constitutes operations by which manufactured items (the items) are brought into or maintained in the form or condition in which they are sold or used, satisfying the meaning of industrial activity in subparagraph 43-150(a)(ii) of the ITAA 1997.

Relevant facts and circumstances: You purchased the Property with settlement June 20XX. The Property is a tilt slab construction factory/warehouse approximately XXX square meters, built in 2018. The Property was fist leased to a tenant (the Tenant) by the developer commencing January 20XX. You purchased the Property with the Tenant as a going concern from the developer. The Tenant, paints items, that are both newly manufactured and used.

Relevant legislative provisions: Section 43-150 of the Income Tax Assessment Act 1997 .