Document ID: chunk:federal_register_of_legislation:C2004C00958:clause:1_9:p10
Version: federal_register_of_legislation:C2004C00958
Segment Type: clause
Provision Reference: sch 1 cl 9 (pt 10/11)
Character Range: 684526–687524

by notifying the Commissioner in writing by the day you lodge your *income tax return for the reduction year. However, the Commissioner can allow you to make it later.

 (1B) If you make a choice under subsection (1), this Division applies to assessments for later income years as if you had never carried on a *primary production business before the reduction year.

Working out the extent of the permanent reduction

 (2) In working out the extent of the permanent reduction, you must work out your *average income for the reduction year on the basis that your *basic assessable income for an income year taken into account in working out your average income did not include any assessable income from sources from which you do not usually receive assessable income.

 (3) In working out the extent of the permanent reduction, disregard a reduction in *basic taxable income to the extent that it results from a change of assets from which assessable income was *derived into assets from which you derive income that is not assessable income.

[The next Division is Division 400.]

Division 400—Environmental impact assessment and environmental protection

Table of Subdivisions

 Guide to Division 400

400‑A Deducting expenditure on environmental impact assessment

400‑B Deducting expenditure on environmental protection activities

400‑C Property taken to be used for producing assessable income

Guide to Division 400

400‑1  What this Division is about

      This Division creates 2 capital allowances.

                  Note: Division 40 sets out an overview of capital allowances.

      Under Subdivision 400‑A you can deduct expenditure on assessing the environmental impact of an income‑producing project. Generally, you deduct the expenditure over 10 years, but the period may be shorter, depending on the project's estimated life.

      Under Subdivision 400‑B you can deduct expenditure on preventing or treating waste and pollution of the environment connected with your income‑producing activities or the site of those activities. You deduct in the income year in which you incur the expenditure.

      Subdivision 400‑C treats your use of property for certain environmental activities as use for the purpose of producing assessable income. (This may let you deduct expenditure on the property under other provisions).

Subdivision 400‑A—Deducting expenditure on environmental impact assessment

Table of sections

400‑15 Deducting your expenditure on environmental impact assessment of your project
400‑20 Limits on deductions

400‑15  Deducting your expenditure on environmental impact assessment of your project

 (1) You can deduct amounts for expenditure to the extent that you incur it on carrying out an activity for the sole or dominant purpose of evaluating the impact on the environment (or the likely impact) of a project that is carried out, or is proposed to be carried out:

 (a) for the *purpose of producing your assessable income for an