Document ID: chunk:federal_register_of_legislation:C2025C00029:section:3:p14
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 3 (pt 14/54)
Character Range: 1121494–1124148

on the capital works was incurred after 18 August 1992.
Note: This subsection allows you to deduct an amount for some earthworks that are excluded by paragraph (4)(a) if the earthworks are constructed in carrying out an environmental protection activity.

43‑25  Rate of deduction
 (1) For capital works begun after 26 February 1992, there is a basic entitlement to a rate of 2.5% for parts used as described in Table 43‑140 (Current year use). The rate increases to 4% for parts used as described in Table 43‑145 (Use in the 4% manner).
 (2) For capital works begun before 27 February 1992 and used as described in Table 43‑140, the rate is:
 (a) 4% if the capital works were begun after 21 August 1984 and before 16 September 1987; or
 (b) 2.5% in any other case.
Note: Section 43‑80 explains when capital works begin.

43‑30  No deduction until construction is complete
  You cannot deduct an amount for any period before the completion of construction of the capital works even though you used them, or part of them, before completion.

43‑35  Requirement for registration under the Industry Research and Development Act
  You may deduct an amount under this Division on the basis of using capital works for the purpose of conducting *R&D activities only if:
 (a) you are registered under section 27A (registering R&D activities) of the Industry Research and Development Act 1986 for the R&D activities for an income year; or
 (b) if you are an *R&D partnership—an *R&D entity, who was a partner of the R&D partnership at some time while the R&D activities were conducted, is registered under that section for the R&D activities for an income year.
Note 1: R&D activities must be conducted in connection with a business carried on for the purpose of producing assessable income, see section 43‑195.
Note 2: You may still deduct an amount under this Division if you were registered for the R&D activities under former section 39J (Registration of eligible companies) of the Industry Research and Development Act 1986 (see section 355‑200 of the Income Tax (Transitional Provisions) Act 1997).

43‑40  Deduction for destruction of capital works
 (1) You can deduct an amount if all or a part of *your area is destroyed in an income year and:
 (a) you have been allowed, or can claim, a deduction under this Division, or former Division 10C or 10D of Part III of the Income Tax Assessment Act 1936, for your area; and
 (b) there is an amount of *undeducted construction expenditure for your area; and
 (c) you were using your area in the way that applies to it under Table 43‑140 (Current year use) immediately before the destruction or, if not, neither