Document ID: chunk:federal_register_of_legislation:C2025C00029:section:3:p38
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 3 (pt 38/54)
Character Range: 1184164–1186870

they had fewer than 10 bedrooms or apartments) do not qualify for a deduction under this Division.

43‑195  Use for R&D activities must be in connection with a business
  You are taken not to use capital works for *R&D activities unless you do so in connection with a business that you carry on for the *purpose of producing assessable income.
Note: This section affects Tables 43‑90 and 43‑140.

Subdivision 43‑F—Calculation of deduction

Guide to Subdivision 43‑F

43‑200  What this Subdivision is about

      This Subdivision shows you how to calculate the amount of a deduction under section 43‑10. The calculations must be made separately for each area that is identified as your area.
      There are 2 separate calculation provisions: One for capital works begun before 27 February 1992; and the other for capital works begun after 26 February 1992.

Table of sections
43‑205 Explanatory material

Operative provisions
43‑210 Deduction for capital works begun after 26 February 1992
43‑215 Deduction for capital works begun before 27 February 1992
43‑220 Capital works taken to have begun earlier for certain purposes

43‑205  Explanatory material

Capital works begun before 27 February 1992
  The calculation for these works is based on *your construction expenditure and the applicable rate of deduction. There can be only one rate of deduction that applies to *your area. However, reductions of deductions may apply.
  You must reduce your deduction for any period in the income year that you did not own *your area and use it in the way described in Table 43‑140 (Current year use). Because there are 2 use tests in Table 43‑140 for *hotel buildings and *apartment buildings (a general income producing test and a more specific hotel and short‑term traveller accommodation use test), there are 2 reduction steps.
  The first step reduces your deduction if part of *your area was not used as a *hotel building or *apartment building. The second step reduces the deduction to the extent that your area is used only partly for the *purpose of producing assessable income. This occurs, for example, if you *derive both assessable and exempt income, or if part of your area is not used to produce assessable income for all or part of the period it was used as a hotel building or apartment building.

Capital works begun after 26 February 1992
  The calculation for these works is based on a portion of *your construction expenditure and the applicable rate of deduction. There can be 2 rates of deduction for your area depending on the way you use it.
  If 2 rates apply, there will be a separate calculation for the part of *your area used in the way described in Table 43‑140 and for the part of