Issue
Is a Covered Outdoor Learning Area (COLA) a 'building' for the purposes of item 2.1.10 in the table in subsection 30-25(1) of the Income Tax Assessment Act 1997 (ITAA 1997)?
Decision
Yes. A COLA is a 'building' for the purposes of item 2.1.10 in the table in subsection 30-25(1) of the ITAA 1997.
Facts
A school intends to build a COLA.
It will be 20 metres long, 8 metres wide and 2.7 metres high and free standing.
The COLA will be made of galvanised steel with colour bond roofing, guttering, downpipes, and a concrete floor.
It will not have any walls.
The COLA will be fixed to the land via posts embedded in concrete.
It will be used for outdoor classes and assemblies.
Reasons for Decision
Subdivision 30-B of the ITAA 1997 sets out the funds, authorities and institutions which are eligible to receive deductible gifts.
Item 2.1.10 in the table in subsection 30-25(1) of the ITAA 1997 includes: a public fund established and maintained solely for providing money for the acquisition, construction or maintenance of a building used, or to be used, as a school or college ....
The Commissioner's view on what is a 'building' for the purposes of the above subsection is set out in Taxation Ruling TR 96/8.
Paragraph 8 of TR 96/8 states: The word 'building' means a permanent structure usually with walls and a roof.
The above definition intentionally uses the term 'usually with walls and a roof' to indicate that, even though the conventional view of a building is that of a structure with walls and a roof, this is not always the case.
The COLA is a permanent structure as it is fixed to the ground via posts embedded in concrete. Its size and method of construction indicate that it is intended to remain in place for a considerable period of time.
As such, the COLA, even though it has no walls, is a 'building' for the purposes of item 2.1.10 in the table in subsection 30-25(1) of the ITAA 1997.