Document ID: chunk:federal_register_of_legislation:C2004C00927:clause:1_3:p21
Version: federal_register_of_legislation:C2004C00927
Segment Type: clause
Provision Reference: sch 1 cl 3 (pt 21/24)
Character Range: 463283–465970

*timber mill building.

To work out how much you can deduct, see section 387‑470.

Note: 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 387‑475 and 387‑480 of this Act (limiting expenditure you can deduct and specifying when 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).

387‑465  Meaning of forestry road, timber operation and timber mill building

 (1) A forestry road is a road constructed primarily and principally for the purpose of providing access to an area to enable:
 (a) trees to be planted or tended in the area; or
 (b) timber felled in the area to be removed.
For this purpose, a road includes any bridge, culvert or similar work forming part of the road.

 (2) A timber operation is:
 (a) planting or tending trees for felling; or
 (b) felling standing timber; or
 (c) removing felled timber; or
 (d) milling felled timber or processing it in another way.

 (3) A timber mill building is a building:
 (a) for use primarily and principally:
 (i) in carrying on your *business of milling timber for the *purpose of producing assessable income; or
 (ii) as residential accommodation for your employees engaged in connection with the *business, or for their dependants; and
 (b) located in a forest, and in or adjacent to the area where timber milled in the business is, or is to be, felled.

387‑470  How much you can deduct for the current year

  Work out the amount you can deduct for the *current year using the formula:

where:

capital expenditure is the amount of your capital expenditure.

previous deductions is the sum of the amounts that you have deducted or can deduct for income years before the *current year under this Subdivision for your capital expenditure.

remaining life is the number of whole years for which you estimate that the road or building will be used after the *current year for the purpose for which it was primarily and principally constructed or acquired. However, if that number is more than 25, remaining life is 25.

Note 1: Section 387‑475 may limit the amount of expenditure on acquiring a forestry road or timber building that you can count for this purpose.

Note 2: When working out previous deductions, take account of amounts deducted or deductible under section 124F or 124JA of the Income Tax Assessment Act 1936 for the road or building. See section 387‑472 of the Income Tax (Transitional Provisions) Act 1997.

Limits on deductions

387‑475