Document ID: chunk:federal_register_of_legislation:C2025C00029:section:3:p42
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 3 (pt 42/54)
Character Range: 1193514–1196343

your construction expenditure you have left to write off. It is used to work out:
          • the number of years in which you can deduct amounts for your construction expenditure; and
          • the amount that you can deduct under section 43‑40 if your area or a part is destroyed.

Table of sections

Operative provisions
43‑230 Calculating undeducted construction expenditure—common step
43‑235 Post‑26 February 1992 undeducted construction expenditure
43‑237 Post‑26 February 1992 undeducted construction expenditure—modification for active build to rent developments that have ceased
43‑240 Pre‑27 February 1992 undeducted construction expenditure

Operative provisions

43‑230  Calculating undeducted construction expenditure—common step
 (1) Identify the date when the capital works began.
Note 1: The date determines whether your calculation is to be made under section 43‑235 (for post‑26/2/92 expenditure) or 43‑240 (for pre‑27/2/92 expenditure).
Note 2: Section 43‑80 explains when capital works begin.
 (2) If you are calculating a deduction under Subdivision 43‑F, identify the period (use period) that:
 (a) started when *your area, or a part of it, was first used by any entity for any purpose after completion of the relevant construction; and
 (b) ended at the end of the preceding income year or, if you acquired your area during the income year, at the end of the day before the time of the acquisition.
 (3) If you are calculating a deduction under Subdivision 43‑H, identify the period (use period) that started at the time described in paragraph (2)(a) and ended at the time of the destruction.

43‑235  Post‑26 February 1992 undeducted construction expenditure
  Step 1  Calculate for each day in the use period the amount worked out using the formula:
where:
portion of your CE is the portion of *your construction expenditure that is attributable to the part of *your area that you used in the *4% manner.
  Step 2  Calculate for each day in the use period the amount worked out using the formula:
where:
portion of your CE is the portion of *your construction expenditure that is attributable to the part of *your area that you did not use in the *4% manner.
  Step 3  Add the aggregate of the amounts calculated under Steps 1 and 2.
  Step 4  Deduct the sum of those amounts from *your construction expenditure. The result is the undeducted construction expenditure for *your area.

43‑237  Post‑26 February 1992 undeducted construction expenditure—modification for active build to rent developments that have ceased
 (1) This section applies if:
 (a) a part of *your area was an *active build to rent development area; and
 (b) on a day (the cessation day) in the income year or a prior income year, the *active build to rent development of the active build to rent development area *ceases to be an