Document ID: chunk:federal_register_of_legislation:C2004A00844:clause:1_6:p12
Version: federal_register_of_legislation:C2004A00844
Segment Type: clause
Provision Reference: sch 1 cl 6 (pt 12/18)
Character Range: 144250–147022

of or from a site where an entity was carrying on any *business that you have acquired and carry on substantially unchanged as your earning activity;
 (b) treating, cleaning up, removing or storing:
 (i) waste resulting, or likely to result, from your earning activity; or
 (ii) waste that is on or from the site of *your earning activity; or
 (iii) waste that is on or from a site where an entity was carrying on any business that you have acquired and carry on substantially unchanged as your earning activity.
No other activities are environmental protection activities.

 (3) Your earning activity is an activity you carried on, carry on, or propose to carry on:
 (a) for the *purpose of producing assessable income for an income year (except a *net capital gain); or
 (b) for the purpose of *exploration or prospecting; or
 (c) for the purpose of *mining site rehabilitation; or
 (d) for purposes that include one or more of those purposes.

 (4) If *your earning activity is:
 (a) leasing a site you own; or
 (b) granting a right to use a site you own or control; or
 (c) a similar activity involving a site;
that site is taken to be the site of your earning activity.

Note: This means you can deduct your expenditure on environmental protection activities relating to the site, even if the pollution or waste is caused by another entity that uses the site.

40‑760  Limits on deductions from environmental protection activities

Expenditure you cannot deduct

 (1) You cannot deduct an amount under section 40‑755 for an income year for:
 (a) expenditure for acquiring land; or
 (b) capital expenditure for constructing a building, structure or structural improvement; or
 (c) capital expenditure for constructing an extension, alteration or improvement to a building, structure or structural improvement; or
 (d) a bond or security (however described) for performing *environmental protection activities; or
 (e) expenditure to the extent that you can deduct an amount for it under a provision of this Act outside this Subdivision.

Note: You may be able to deduct expenditure described in paragraph (1)(b) or (c) under Division 43 (which deals with capital works).

 (2) In particular, you cannot deduct under section 40‑755 expenditure to the extent that you incur it on carrying out an activity for environmental impact assessment of your project.

 (3) However, a provision of this Act (except Division 8 (which is about deductions)) that expressly prevents or restricts the operation of that Division applies in the same way to section 40‑755.

40‑765  Non‑arm's length transactions

  If you incurred capital expenditure under an *arrangement and:
 (a) there is at least one other party to the arrangement with whom you did not deal at *arm's length; and