This Ruling, issued on Wed 21.11.2012, provides the Commissioner’s views on the operation of the capital allowance rules in Div 40 of the ITAA 1997 to open pit mine site improvements that come into being through the conduct of an open pit mining operation.
The Ruling does not apply to other forms of mining operations such as strip mining or underground mining. Broadly, it states that an open pit mine site improvement is a single depreciating asset for tax purposes.
The Ruling also sets out the start time for the purposes of depreciation, the cost base, effective life, and the tax consequences when the owner of the open pit mine improvement joins a consolidated (or MEC) group.
It was previously issued as Draft Taxation Ruling TR 2012/D3 and contains changes to make the Ruling more specific.
DATE OF EFFECT: The Ruling applies both before and after its date of issue.
[LTN 226, 21/11]