04 Aug 09 Decision Impact Statement - Port of Portland
On 3 August 2009, the ATO issued a Decision Impact Statement in relation to the AAT decision in Port of Portland Pty Ltd v FCT  AATA 1162; 2008 ATC 10-071. The case concerned whether two man-made breakwaters and a groyne were "plant" for the purpose of the taxpayer being entitled to claim depreciation or decline in value deductions in respect of the breakwaters.
The AAT held that the breakwaters were plant, as they were integral to, and formed a significant part of, the means by which the taxpayer carried on its business, rather than merely providing a setting in which the taxpayer's business was carried on. The AAT was not satisfied that the function of the groyne was sufficiently associated with the taxpayer's port operations for it to be classified as plant.
The ATO says that the decision applies established principles of law about what is plant to the particular facts of this case. The decision was open to the AAT on the evidence as presented.
For a copy of the Decision Impact Statement, go here