Capital expenditures for resident worker accommodation
4AC Capital expenditures for resident worker accommodation
(1) An amount expended in respect of the design, installation, acquisition or construction of accommodation in the Territory for employees, contractors and other workers who work in the Territory and whose principal place of residence is in the Territory is an eligible capital assets expenditure.
Example for subsection (1)
An amount expended to build houses for workers who live and work in the Territory.
(2) The following are not eligible capital assets expenditures under subsection (1):
(a) compensation in relation to pastoral land or private land, each as defined in section 8 of the Mineral Titles Act 2010 – in excess of that reasonably required to be paid for or in respect of the use or disturbance of the land and any improvements on the land as provided by section 107(1) of the Mineral Titles Act 2010;
(b) compensation in relation to any other land – that would otherwise be required to be paid for or in respect of the use or disturbance of the land and any improvements on the land as provided by section 107(1) of the Mineral Titles Act 2010 if it were land mentioned in paragraph (a);
(c) the costs of negotiating with land holders, unless the amounts were required to be expended in accordance with a law in force in the Territory.
(3) An eligible capital assets expenditure for accommodation under this section that relates to a production unit is taken to be an eligible capital assets expenditure used in relation to the operation of that production unit under this Act, including for calculating:
a capital recognition deduction; and
a net value.
(4) An amount may be claimed under this section in a royalty year only to the extent that the employees, contractors and other workers reside in the accommodation during that royalty year.
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