Document ID: chunk:federal_register_of_legislation:C2025C00029:section:6:p15
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 6 (pt 15/24)
Character Range: 1064198–1066919

If you incurred capital expenditure under an *arrangement and:
 (a) there is at least one other party to the arrangement with whom you did not deal at *arm's length; and
 (b) apart from this section, the amount of the expenditure would be more than the *market value of what it was for;
the amount of expenditure you take into account under this Subdivision is that market value.

Subdivision 40‑I—Capital expenditure that is deductible over time

Guide to Subdivision 40‑I

40‑825  What this Subdivision is about

      You can deduct amounts for certain capital expenditure associated with projects you carry on. You deduct the amounts over the life of the project using a pool.
      You can also deduct amounts for certain business related costs. You deduct these amounts over 5 years (or immediately in the case of some start‑up expenses for small businesses) if the amounts are not otherwise taken into account and are not denied a deduction.

Table of sections

Operative provisions
40‑830 Project pools
40‑832 Project pools for post‑9 May 2006 projects
40‑835 Reduction of deduction
40‑840 Meaning of project amount
40‑845 Project life
40‑855 When you start to deduct amounts for a project pool
40‑860 Meaning of mining capital expenditure
40‑865 Meaning of transport capital expenditure
40‑870 Meaning of transport facility
40‑875 Meaning of processed minerals and minerals treatment
40‑880 Business related costs
40‑885 Non‑arm's length transactions

Operative provisions

40‑830  Project pools
 (1) You can allocate *project amounts to a project pool.
 (2) You can deduct amounts for *project amounts that are allocated to the project pool.
 (3) You calculate your deduction for an income year for a project pool in this way:
where:
DV project pool life is:
 (a) the *project life of the project; or
 (b) if its project life has been recalculated—its most recently recalculated project life.
pool value is:
 (a) for the first income year that a *project amount is allocated to the pool—the sum of the project amounts allocated to the pool for that year; or
 (b) for a later income year—the sum of the pool's *closing pool value for the previous income year and any project amounts allocated to the pool for the later year.
Note: The calculation is made under subsection 40‑832(3) for project amounts incurred on or after 10 May 2006 for projects that start to operate on or after that day.
 (4) If, in an income year, you abandon, sell or otherwise dispose of a project for which you have a project pool, you can deduct for that year the sum of the pool's *closing pool value for the previous income year and any *project amounts allocated to the pool for the income year.
 (5) Your assessable income for that