This Draft TR, issued on Wed 9.5.2012, provides Commissioner’s preliminary views on the operation of capital allowance rules in Div 40 of the ITAA 1997 to open pit mine site improvements.
Broadly, the Draft defines an “open pit mine site improvement” and indicates that the improvement is a depreciating asset.
Further, the Draft 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.
COMMENTS are due by 20 June 2012.
ATO IDs withdrawn
The ATO has withdrawn the following IDs with effect from Wed 9.5.2012, as it says the views provided by the IDs have been superseded by Draft TR 2012/D3:
- ATO ID 2007/11: Capital Allowances: depreciating asset – composite asset – open-cut mine pit haulage road;
- ATO ID 2007/12: Capital Allowances: depreciating assets – open-cut mine benches, batters, berms and catchberms;
- ATO ID 2007/13: Capital Allowances: depreciating asset – composite asset – all open-cut mine pit haulage roads; and
- ATO ID 2007/14: Depreciating Assets: composite item – open-cut mine pit.
[LTN 88, 9/5]