Taxation Determination TD 93/52







[Note: This is a consolidated version of this document. Refer to the Tax Office Legal Database (http://law.ato.gov.au) to check its currency and to view the details of all changes.]: 1. Subdivision 330-H should be considered in terms of overall use by all users during the year of income. The test does not involve the taxpayer's purpose for the road expenditure. | 2. In accordance with sections 330-370 and 330-385, it is a requirement that the road is for use primarily and principally for the transport of minerals obtained from the carrying on by any person of eligible mining operations or of processed materials produced from such minerals. | 3. Those minerals should be transported in the carrying on of a business for the purpose of gaining or producing assessable income. | 4. If the road is not used primarily and principally for the transport of minerals as referred to in sections 330-370 and 330-385 in a particular year, as a result of termination of use for that purpose, then no deduction in terms of section 330-395 would be allowable. The application of sections 330-480 and 330-485 would then be appropriate. | 5. Deductions could be recommenced in a subsequent year in terms of section 330-405 where the use primarily and principally as referred to in sections 330-370 and 330-385 has been restored. | 6. We consider that 'terminated' involves more than a temporary cessation. Section 330-400 is not intended to apply when only a temporary failure to satisfy sections 330-370 and 330-385 has occurred. | Example: At the direction of the relevant Government authorities, a mining company has been required to outlay $1 million specifically for the purpose of upgrading an existing road to accomodate heavy trucks necessary for the transport of minerals from its eligible mining operations. Should the road not be used primarily and principally for mineral transport in view of the extent of other use by both the mining company and other users, the conditions of sections 330-370 and 330-385 would not be satisfied. TD 93/53 explains how to determine the extent of road use for mineral transport. NOTE: Provisions of the Income Tax Assessment Act 1997 ('the new Act'), to which this Determination refers, express the same ideas as provisions of the Income Tax Assessment Act 1936 ('the old Act'). The following table cross references the provisions of the new Act to the corresponding provisions of the old Act. | Sections 330-370 and 330-385 | Sections 330-370 and 330-485 | Sections 330-480 and 330-485 | Commissioner of Taxation 25/3/93 | Previously issued as Draft TD92/D217


Related rulings: TD 93/53 IT 2078
Legislative references: ITAA 1936 123A ITAA 1936 123B ITAA 1936 123C ITAA 1997 Subdiv 330-H ITAA 1997 330-370 ITAA 1997 330-385 ITAA 1997 330-395 ITAA 1997 330-400 ITAA 1997 330-405 ITAA 1997 330-480 ITAA 1997 330-485
Subject references: Mineral Transport Expenditure