Document ID: chunk:federal_register_of_legislation:C2004A00844:clause:1_6:p14
Version: federal_register_of_legislation:C2004A00844
Segment Type: clause
Provision Reference: sch 1 cl 6 (pt 14/18)
Character Range: 149288–151914

for the abandonment, sale or other disposal.

 (6) Your assessable income for an income year includes other capital amounts that you derive in that year in relation to a *project amount allocated to your project pool or in relation to something on which the project amount is expended.

 (7) The closing pool value of a project pool for an income year is:
 (a) for the first income year that a *project amount is allocated to the pool—the sum of the project amounts allocated to the pool for that year less the amount you could deduct for the pool for that year (apart from section 40‑835); or
 (b) for a later income year—the sum of the pool's *closing pool value for the previous income year and any project amounts allocated to the pool for the later year less the amount you could deduct for the pool for the later year (apart from section 40‑835).

 (8) Your deduction for an income year cannot be more than the amount of the component "pool value" in the formula in subsection (3) for that year.

40‑835  Reduction of deduction

  You must reduce your deduction under section 40‑830 for an income year by a reasonable amount for the extent (if any) to which the project operates in the year for purposes other than *taxable purposes.

40‑840  Meaning of project amount

 (1) An amount of *mining capital expenditure or *transport capital expenditure you incur is a project amount if:
 (a) it does not form part of the *cost of a *depreciating asset you *hold or held; and
 (b) you cannot deduct it under a provision of this Act outside this Subdivision; and
 (c) it is directly connected with:
 (i) for mining capital expenditure—carrying on the *mining operations in relation to which the expenditure is incurred; or
 (ii) for transport capital expenditure—carrying on the *business in relation to which the expenditure is incurred.

 (2) Another amount of capital expenditure you incur is also a project amount so far as:
 (a) it does not form part of the *cost of a *depreciating asset you *hold or held; and
 (b) you cannot deduct it under a provision of this Act outside this Subdivision; and
 (c) it is directly connected with a project you carry on or propose to carry on for a *taxable purpose; and
 (d) it is one of these:
 (i) an amount paid to create or upgrade community infrastructure for a community associated with the project; or
 (ii) an amount incurred for site preparation costs for depreciating assets (except, for *horticultural plants including grapevines, in draining swamp or low‑lying land or in clearing land); or
 (iii) an amount incurred for feasibility studies for the project; or
 (iv) an