Document ID: chunk:federal_register_of_legislation:C2025C00029:section:3:p20
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 3 (pt 20/54)
Character Range: 1136570–1140011

When capital works begin
  Capital works are taken to begin when the first step in the construction phase starts. For example, the pouring of foundations or sinking of pilings for a building.
Note 1: Capital works begun after 15 September 1987 are taken to have begun before 16 September 1987 in certain circumstances. See section 43‑220.
Note 2: The time when capital works begin is relevant for determining whether the capital works qualify for deduction, the use to which those works must be put, the rate of deduction and the calculation mechanism used. However, the time when capital works begin does not limit what qualifies as construction expenditure.

43‑85  Pools of construction expenditure
 (1) A pool of construction expenditure is so much of the *construction expenditure incurred by an entity on capital works as is attributable to the *construction expenditure area.
 (2) In applying subsection (1) in a case to which subsection 43‑75(3) (dealing with purchases from speculative builders) applies, assume that the expenditure incurred by the other entity was capital expenditure, but that the limitations in subsection 43‑70(2) (which sets out types of expenditure that are not *construction expenditure) still apply to the other entity's expenditure.
Note: The builder's profit margin does not form part of the construction expenditure of the purchaser.

43‑90  Table of intended use at time of completion of construction

Column 1                         Column 2                           Column 3
Date capital works begin         Type of capital works              Intended use on completion
Time period 1:                   Hotel building                     For use by any entity wholly or mainly to operate a hotel, motel or guest house that has at least 10 bedrooms that are for use wholly or mainly to provide short‑term accommodation for travellers.
22/8/79 to 19/7/82 (inclusive)
                                 Apartment building                 The building consisted of:
                                                                    (a) at least 10 apartments, units or flats each of which was for use wholly or mainly to provide short‑term accommodation for travellers; or
                                                                    (b) at least 10 apartments, units or flats each of which was for use for that purpose and facilities that are wholly or mainly for use in association with providing short‑term accommodation for travellers in those apartments, units or flats.
Time period 2:                   Hotel building                     As for time period 1.
20/7/82 to 17/7/85 (inclusive)
                                 Apartment building                 As for time period 1.
                                 Non‑residential building           For:
                                                                    (a) use by the entity that incurred the expenditure for the *purpose of producing assessable income or exempt income; or
                                                                    (b) disposal by that entity to another entity for use by the other entity for the purpose of producing assessable income or exempt income.
Time period 3:                   Any building                       For:
18/7/85 to 20/11/87 (inclusive)                                     (a) use by the entity that incurred the expenditure for the *purpose of producing assessable income