(1) You can deduct amounts for capital expenditure you incur on * connecting power to land or upgrading the connection if, when you incur the expenditure:
(a) you have an interest in the land or are a share-farmer carrying on a * business on the land; and
(b) you or another entity intends to use some or all of the electricity to be supplied as a result of the expenditure in carrying on a business on the land for a * taxable purpose at a time when you have an interest in the land or are a share-farmer carrying on 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.