The decline in value of a *horticultural plant for the income year in which it starts to decline in value is all of the capital expenditure attributable to the establishment of the plant if its *effective life is less than 3 years.
You work out the decline in value for an income year of a *horticultural plant whose *effective life is 3 years or more in this way:
Write-off days in income year 365
establishment expenditure is the amount of capital expenditure incurred that is attributable to the establishment of the *horticultural plant.
write-off days in income year is the number of days in the income year on which you satisfied a condition in subsection 40-525(2) for the plant and either used it for *commercial horticulture or held it ready for that use.
write-off rate is the rate shown in this table for the *horticultural plant according to its *effective life.
Write-off rate for horticultural plant
Effective life of:
The write-off rate is:
3 to fewer than 5 years
5 to fewer than 62/3 years
62/3 to fewer than 10 years
10 to fewer than 13 years
13 to fewer than 30 years
30 years or more
Limit on write-off days
Disregard your use of the *horticultural plant on a day outside the period that:
(a) starts when the plant can first be used for *commercial horticulture; and
(b) extends for the time shown in this table (depending on the plant's *effective life).
Period after which you cannot count use of horticultural plant