The recent Tax Laws Amendment (2006 Measure No. 1) Bill 2006 replaces s 40-880 of the Income Tax Assessment Act 1997 by repealing the existing blackhole expenditure provisions and by expanding the allowable deductions for certain business-related capital expenses that are not otherwise recognised and are not denied a deduction elsewhere in the income tax law. These changes should give clients an opportunity to claim a tax deduction over five years in respect of capital expenditure or at least allow the capital expenditure to be included in the cost base of the asset.
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