Document ID: chunk:federal_register_of_legislation:C2025C00029:section:2:p1
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 2 (pt 1/6)
Character Range: 843366–847828

2                                    Rules about other capital expenditure
2.1                                  Capital expenditure of primary producers and other landholders                                                                                                                                                                                                                                Subdivision 40‑G
                                     You can deduct amounts for capital expenditure on:
                                         * landcare operations immediately; or
                                         * electricity and telephone lines over 10 income years.
2.2                                  Capital expenditure that is immediately deductible                                                                                                                                                                                                                                            Subdivision 40‑H
                                     You can get an immediate deduction for certain capital expenditure on:
                                         * exploration or prospecting; and
                                         * rehabilitation of mine and quarry sites; and
                                         * paying petroleum taxes; and
                                         * environmental protection activities.
2.3                                  Capital expenditure that is deductible over time                                                                                                                                                                                                                                              Subdivision 40‑I
                                     You can deduct amounts for certain capital expenditure associated with projects you carry on. You deduct the amount over the life of the project using a project pool.
                                     You can also deduct amounts for certain business related costs over 5 years where the amounts are not otherwise taken into account and are not denied a deduction.
2.4                                  Capital expenditure for establishing trees in carbon sink forests                                                                                                                                                                                                                             Subdivision 40‑J
                                     You can deduct amounts for capital expenditure for the establishment of trees in carbon sink forests.

Subdivision 40‑A—Objects of Division

Table of sections
40‑15 Objects of Division

40‑15  Objects of Division
  The objects of this Division are:
 (a) to allow you to deduct the *cost of a *depreciating asset; and
 (b) to spread the deduction over a period that reflects the time for which the asset can be used to obtain benefits; and
 (c) to provide deductions for certain other capital expenditure that is not otherwise deductible.
Note 1: This Division does not apply to some depreciating assets: see section 40‑45.
Note 2: The application of this Division to a life insurance company is affected by sections 320‑200 and 320‑255.

Subdivision 40‑B—Core provisions

Guide to Subdivision 40‑B

40‑20  What this Subdivision is about

      The rules that apply to most depreciating assets are in this Subdivision. It explains:
         • what a depreciating asset is; and
         • when you start deducting amounts for depreciating assets; and
         • how to work out your deductions.
      It also contains rules for splitting and merging depreciating assets.

Table of sections

Operative provisions
40‑25 Deducting amounts for depreciating assets
40‑27 Further reduction of deduction for second‑hand assets in residential property
40‑30 What a depreciating asset is
40‑35 Jointly held depreciating assets
40‑40 Meaning of hold a depreciating asset
40‑42 When mining, quarrying or prospecting rights are used
40‑45 Assets to which this Division does not apply
40‑50 Assets for which you deduct under another Subdivision
40‑53 Alterations etc. to certain depreciating assets
40‑55 Use of the "cents per kilometre" car expense deduction method
40‑60 When a depreciating asset starts to decline in value
40‑65 Choice of methods to work out the decline in value
40‑70 Diminishing value method