- Since July 1, 2001, tax legislation has enabled some types of
capital expenditure to be immediately deductible against assessable
income. Environmental Protection Activities (EPA) is one such type of
- EPA are activities undertaken to prevent, fight and remedy pollution
and to treat, clean up, remove and store waste from a site where a
taxpayer partakes in an income earning activity.
- An income earning activity includes activities that are carried on,
or proposed to be carried on, for the purpose of producing assessable
income (other than a net capital gain), exploration or prospecting, and
mine site rehabilitation.
- An immediate deduction is also available for expenditure on EPA
relating to a site where the pollution or waste was caused by another
entity which leased the site from the taxpayer.
- A deduction is not available for:
- EPA bonds and security deposits;
- Expenditure on acquiring land;
- Expenditure on constructing or altering buildings, structures or structural improvements; and
- Expenditure that forms part of the cost of a depreciating asset.
- A recoupment of expenditure may be included in the taxpayers assessable income
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Sunday, 2 September 2012
Immediate deduction for environmental protection activities
Posted by Angel Hayes at 23:50