22 Nov 1212 Capital allowances: treatment of open pit mine site improvements - TR 2012/7
This new Taxation Ruling considers the operation of the capital allowance rules in Division 40 of the ITAA 1997 as they apply to an open pit mine site improvement that comes into being through the conduct of an open pit mining operation: TR 2012/7 (21 November 2012). The ruling does not apply to other forms of mining operation such as strip mining or underground mining.
The ruling was originally released in draft as TR 2012/D3.
The ruling considers:
- the meaning of an “improvement to land” as that phrase appears in s 40-30(3)
- the identifiable improvement to land in the context of an open pit mining operation
- whether that improvement to land is a depreciating asset
- the identifiable depreciating asset
- whether that depreciating asset is held by the miner
- the start time of that depreciating asset
- when that depreciating asset is being used for a taxable purpose
- the determination of the effective life of that depreciating asset
- the cost of that depreciating asset
- the operation of the balancing adjustment event provisions to that depreciating asset, and
- the treatment of that depreciating asset by the consolidation tax cost setting rules in Part 3-90.