Commonwealth Consolidated Acts

INCOME TAX ASSESSMENT ACT 1997 - SECT 40.840

  (1)   An amount of * mining capital expenditure or * transport capital expenditure you incur is a project amount if:

  (a)   it does not form part of the * cost of a * depreciating asset you * hold or held; and

  (b)   you cannot deduct it under a provision of this Act outside this Subdivision; and

  (c)   it is directly connected with:

  (i)   for mining capital expenditure--carrying on the * mining and quarrying operations in relation to which the expenditure is incurred; or

  (ii)   for transport capital expenditure--carrying on the * business in relation to which the expenditure is incurred.

  (2)   Another amount of capital expenditure you incur is also a project amount so far as:

  (a)   it does not form part of the * cost of a * depreciating asset you * hold or held; and

  (b)   you cannot deduct it under a provision of this Act outside this Subdivision; and

  (c)   it is directly connected with a project you carry on or propose to carry on for a * taxable purpose; and

  (d)   it is one of these:

  (i)   an amount paid to create or upgrade community infrastructure for a community associated with the project; or

  (ii)   an amount incurred for site preparation costs for depreciating assets (except, for * horticultural plants, in draining swamp or low - lying land or in clearing land); or

  (iii)   an amount incurred for feasibility studies for the project; or

  (iv)   an amount incurred for environmental assessments for the project; or

  (v)   an amount incurred to obtain information associated with the project; or

  (vi)   an amount incurred in seeking to obtain a right to * intellectual property; or

  (vii)   an amount incurred for ornamental trees or shrubs.