Document ID: chunk:federal_register_of_legislation:C2010C00260:clause:2_30:p1
Version: federal_register_of_legislation:C2010C00260
Segment Type: clause
Provision Reference: sch 2 cl 30 (pt 1/2)
Character Range: 44556–47003

30  Section 40‑880
Repeal the section, substitute:

40‑880  Business related costs

Object

 (1) The object of this section is to make certain *business capital expenditure deductible over 5 years if:
 (a) the expenditure is not otherwise taken into account; and
 (b) a deduction is not denied by some other provision; and
 (c) the business is, was or is proposed to be *carried on for a *taxable purpose.

Deduction

 (2) You can deduct, in equal proportions over a period of 5 income years starting in the year in which you incur it, capital expenditure you incur:
 (a) in relation to your *business; or
 (b) in relation to a business that used to be *carried on; or
 (c) in relation to a business proposed to be carried on; or
 (d) to liquidate or deregister a company of which you were a *member, to wind up a partnership of which you were a partner or to wind up a trust of which you were a beneficiary, that carried on a business.

Limitations and exceptions

 (3) You can only deduct the expenditure, for a *business that you *carry on, used to carry on or propose to carry on, to the extent that the business is carried on, was carried on or is proposed to be carried on for a *taxable purpose.

 (4) You can only deduct the expenditure, for a *business that another entity used to *carry on or proposes to carry on, to the extent that:
 (a) the business was carried on or is proposed to be carried on for a *taxable purpose; and
 (b) the expenditure is in connection with:
 (i) your deriving assessable income from the business; and
 (ii) the business that was carried on or is proposed to be carried on.

 (5) You cannot deduct anything under this section for an amount of expenditure you incur to the extent that:
 (a) it forms part of the *cost of a *depreciating asset that you *hold, used to hold or will hold; or
 (b) you can deduct an amount for it under a provision of this Act other than this section; or
 (c) it forms part of the cost of land; or
 (d) it is in relation to a lease or other legal or equitable right; or
 (e) it would, apart from this section, be taken into account in working out:
 (i) a profit that is included in your assessable income (for example, under section 6‑5 or 15‑15); or
 (ii) a loss that you can deduct (for example, under section 8‑1 or 25‑40); or
 (f) it could, apart from this section, be taken into account in working out the amount of a *capital gain or *capital loss from a *CGT event; or