Document ID: chunk:federal_register_of_legislation:C2025C00029:section:6:p7
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 6 (pt 7/24)
Character Range: 1043729–1046383

a business on the land.
 (2) You can also deduct amounts for capital expenditure you incur on a telephone line on or extending to land if, when you incurred the expenditure:
 (a) a *primary production business was carried on the land; and
 (b) you had an interest in the land or you were a share‑farmer carrying on a primary production business on the land.
 (3) The amount you can deduct is 10% of the expenditure:
 (a) for the income year in which you incur it; and
 (b) for each of the next 9 income years.
Note 1: Various provisions may reduce the amount you can deduct or stop you deducting. For example, see:
                   * Division 26 (limiting deductions generally); and
                   * section 40‑650 (specifying expenditure you cannot deduct under this Subdivision); and
                   * Division 245 (which may affect your entitlement to a deduction if your debts are forgiven).
Note 2: If you recoup an amount of the expenditure, the amount will be included in your assessable income. See Subdivision 20‑A.

40‑650  Amounts you cannot deduct under this Subdivision
 (1) You cannot deduct amounts for capital expenditure you incur on *connecting power to land or upgrading the connection if, during the 12 months after electricity is first supplied to the land as a result of the expenditure, no electricity supplied as a result of the expenditure is used in carrying on a *business on the land for a *taxable purpose.
 (2) If you deducted an amount for any income year under this Subdivision for the expenditure, your assessment for that income year may be amended under section 170 of the Income Tax Assessment Act 1936 to disallow the deduction.
 (3) You cannot deduct an amount for capital expenditure you incur on *connecting power to land or upgrading the connection for:
 (a) expenditure in providing water, light or power for use on, access to or communication with the site of *mining and quarrying operations; or
 (b) a contribution to the cost of providing water, light or power for those operations.
 (4) You cannot deduct an amount for any income year for your capital expenditure on a part of a telephone line if:
 (a) any entity has deducted, or can deduct, an amount for any income year for the cost of that part under a provision of this Act (except this Subdivision); or
 (b) the cost of that part has been, or must be, taken into account in working out:
 (i) the amount of any entity's deduction (including a deduction for a *depreciating asset) for any income year under a provision of this Act (except this Subdivision); or
 (ii) the net income, or partnership loss, of a partnership under section 90 of the