Document ID: chunk:federal_register_of_legislation:C2004C00927:clause:1_3:p15
Version: federal_register_of_legislation:C2004C00927
Segment Type: clause
Provision Reference: sch 1 cl 3 (pt 15/24)
Character Range: 448141–450890

Deductions

387‑355 Deducting expenditure on connecting power to land or upgrading the connection
387‑360 Meaning of connecting power to land or upgrading the connection

Limits on deductions

387-365 Deduction denied if electricity not used as intended
387‑370 Expenditure relating to mining cannot be deducted
387‑375 Deductions under this Subdivision prevent other deductions for same expenditure

Partnerships

387‑380 How this Subdivision applies to partners and partnerships

Other deductible expenditure

387‑390 Contributions to cost of connecting power to land or upgrading the connection

Deductions

387‑355  Deducting expenditure on connecting power to land or upgrading the connection

 (1) You can deduct an amount under subsection (2) if:
 (a) you incur capital expenditure on *connecting power to land or upgrading the connection; and
 (b) when you incur the expenditure:
 (i) you have an interest in the land or are a share-farmer carrying on a *business on the land; and
 (ii) you or another person intends to use some or all of the electricity to be supplied as a result of the expenditure in carrying on a *business on the land for the *purpose of producing assessable income at a time when you have an interest in the land or are a share-farmer carrying on a *business on the land.

Note 1: You can also deduct your contribution to the cost of connecting power to land or upgrading the connection. See section 387‑390.

Note 2: You will be denied the deduction if the electricity is not used as intended within 12 months after it is first supplied as a result of the expenditure. See section 387‑365.

 (2) You can deduct 10% of the expenditure:
 (a) for the income year in which you incur it; and
 (b) for each of the next 9 income years.

Note 1: Various provisions may reduce the amount you can deduct or stop you deducting. For example, see:
  *    Division 26 of this Act (limiting deductions generally);
  *    sections 387‑370 of this Act (specifying expenditure you cannot deduct under this Subdivision);
  *    Division 245 of Schedule 2C to the Income Tax Assessment Act 1936 (which may affect your entitlement to a deduction if your debts are forgiven).

Note 2: If you recoup an amount of the expenditure, the amount will be included in your assessable income. See Subdivision 20‑A.

387‑360  Meaning of connecting power to land or upgrading the connection

 (1) Each of the following operations is connecting power to land or upgrading the connection:
 (a) connecting a mains electricity cable to a *metering point on the land (whether or not the point from which the cable is connected is on the land);
 (b) providing or installing equipment designed to measure the amount of electricity supplied through a