A T O home
Legal Database
Search   
for 
 
Access the database 
Browse database
Searches  
View last document
Quick access 
View legislation
View a document
Email Cross Reference Material Previous/Next Section Contents Previous/Next Result
Printable version
Printable
version

Income Tax Assessment Act 1997

CHAPTER 2 - LIABILITY RULES OF GENERAL APPLICATION  

PART 2-10 - CAPITAL ALLOWANCES: RULES ABOUT DEDUCTIBILITY OF CAPITAL EXPENDITURE  

Division 40 - Capital allowances    View history reference

Subdivision 40-F - Primary production depreciating assets    View history reference

Operative provisions

SECTION 40-545  How you work out the decline in value for horticultural plants  

 View history reference ITAA 36

40-545(1)  

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.

40-545(2)  

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:
 Establishment
expenditure
×Write-off days in income year
365
×Write-off rate 

where:

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
ItemEffective life of:The write-off rate is:
13 to fewer than 5 years40%
.......... .
25 to fewer than 6 2/3 years27%
.......... .
36 2/3 to fewer than 10 years20%
.......... .
410 to fewer than 13 years17%
.......... .
513 to fewer than 30 years13%
.......... .
630 years or more7%

Limit on write-off days

40-545(3)  

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
ItemEffective life:Time limit:
13 to fewer than 5 years2 years and 183 days
.......... .
25 to fewer than 6 2/3 years3 years and 257 days
.......... .
36 2/3 to fewer than 10 years5 years
.......... .
410 to fewer than 13 years5 years and 323 days
.......... .
513 to fewer than 30 years7 years and 253 days
.......... .
630 years or more14 years and 105 days


 



This information is provided by CCH Australia Limited. View the disclaimer and notice of copyright.
Top of page
More information on page