Document ID: chunk:federal_register_of_legislation:C2004C00958:clause:1_5:p1
Version: federal_register_of_legislation:C2004C00958
Segment Type: clause
Provision Reference: sch 1 cl 5 (pt 1/11)
Character Range: 689744–692880

5                                                it has been decided to abandon your project                                                        all the expenditure                                                                                                                 the income year in which you incur it

Note 1: Various provisions may reduce the amount you can deduct or stop you deducting. For example, see:

                  * section 400‑20 of this Act (specifying amounts you cannot deduct under this Subdivision);

                  * Division 26 of this Act (limiting deductions generally);

                  * 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 an amount of the expenditure is recouped, the amount may be included in your assessable income: see Subdivision 20‑A.

400‑20  Limits on deductions

No deduction for expenditure deductible under other provisions

 (1) You cannot deduct an amount under this Subdivision for an income year for expenditure to the extent to which:

 (a) you can deduct an amount for it under a provision of this Act outside this Subdivision for an income year; or

 (b) it is taken into account in calculating an amount of depreciation that is deductible under Division 42.

Note: The fact that you can deduct an amount under section 82BB of the Income Tax Assessment Act 1936 for the expenditure does not prevent you from deducting under this Subdivision: see section 400‑20 of the Income Tax (Transitional Provisions) Act 1997.

Common rule 2 applies

 (2) Subdivision 41‑B (which sets out Common rule 2 dealing with non‑arm's length transactions) applies to expenditure for which you can deduct amounts under this Subdivision, but with the modification in subsection (3) of this section.

 (3) If subsection 41‑65(1) applies, it has a wider operation in 2 ways.

  First, it also operates if the amount of the expenditure is less than the market value of what the expenditure is for.

  Second, if the amount of the expenditure is greater than or less than that market value, the amount of the expenditure is taken, for the purposes of applying this Act to both parties, to be that market value.

No deduction for expenditure excluded from general deductions

 (4) You cannot deduct expenditure under section 400‑15 to the extent that a provision of this Act (except section 8‑1 itself) expressly prevents or limits your deducting it under section 8‑1 (about general deductions). It does not matter whether the provision specifically refers to section 8‑1.

Subdivision 400‑B—Deducting expenditure on environmental protection activities

Table of sections

400‑55 Deducting your expenditure on environmental protection activities
400‑60 Meaning of environmental protection activities
400‑65 Limits on deductions

400‑55  Deducting your expenditure on environmental protection activities

 (1) You can deduct expenditure to the extent that you incur it for the sole or dominant purpose of carrying on *environmental protection activities.