Document ID: chunk:federal_register_of_legislation:C2004C00958:clause:1_5:p2
Version: federal_register_of_legislation:C2004C00958
Segment Type: clause
Provision Reference: sch 1 cl 5 (pt 2/11)
Character Range: 692586–695455

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.

 (2) You deduct the expenditure for 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 400‑65 of this Act (specifying amounts you cannot deduct under this Subdivision);

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

Note 2: If an amount of the expenditure is recouped, the amount may be included in your assessable income: see Subdivision 20‑A.

400‑60  Meaning of environmental protection activities

 (1) Environmental protection activities are any of the following activities that are carried on by or for you:

 (a) preventing, fighting or remedying:

 (i) pollution resulting, or likely to result, from *your earning activity; or

 (ii) pollution of or from the site of *your earning activity; or

 (iii) pollution of or from a site where an entity was carrying on any *business that you have acquired and carry on substantially unchanged as *your earning activity;

 (b) treating, cleaning up, removing or storing:

 (i) waste resulting, or likely to result, from *your earning activity; or

 (ii) waste that is on or from the site of *your earning activity; or

 (iii) waste that is on or from a site where an entity was carrying on any *business that you have acquired and carry on substantially unchanged as *your earning activity.

No other activities are environmental protection activities.

 (2) Your earning activity is an activity you carried on, carry on, or propose to carry on:

 (a) for the *purpose of producing your assessable income for an income year (except a *net capital gain); or

 (b) for purposes that include that purpose.

 (3) If *your earning activity is:

 (a) leasing a site you own; or

 (b) granting a right to use a site you own or control; or

 (c) a similar activity involving a site;

that site is taken to be the site of your earning activity.

Note: This means you can deduct your expenditure on environmental protection activities relating to the site, even if the pollution or waste is caused by another entity that uses the site.

400‑65  Limits on deductions

Expenditure you cannot deduct

 (1) You cannot deduct an amount under this Subdivision for an income year for:

 (a) expenditure for acquiring land; or

 (b) expenditure to the extent to which it is taken into account in calculating an amount of depreciation that is deductible under Division 42; or

 (c) capital expenditure for constructing a building, structure or structural