20 (Capital Write-Offs and Allowances)[1]

Foundations of taxation law 204c cch australia

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Foundations of Taxation Law [¶20.4](c) © CCH Australia Limited Amount of deduction Amount of deduction The deduction is a percentage of the “total of the  recognised new investment amounts” The deduction varies depending on: The nature of the entity claiming the deduction The investment commitment time, and The first use time 
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Foundations of Taxation Law [¶20.5](a) © CCH Australia Limited Capital works regime (Div 43  Capital works regime (Div 43  ITAA97) ITAA97) Capital works regime allows “construction  expenditure” incurred in relation to “capital works”  that are used for income-producing and certain other  purposes to be written off over a period of 25 or 40  years Deductions are only available where the capital works  commenced after specified times “Construction expenditure” excludes:  Cost of acquiring land, and Cost of demolishing existing structures or  landscaping
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Foundations of Taxation Law [¶20.5](b) © CCH Australia Limited Rate of write off Rate of write off Annual rate of write-off is 2 ½ % or 4% The rate depends on: Type of capital works Use of “construction expenditure area” Date construction commenced
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