Document ID: chunk:federal_register_of_legislation:C2025C00029:section:6:p4
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 6 (pt 4/24)
Character Range: 1036136–1039009

given in relation to the same *horticultural plant.

Subdivision 40‑G—Capital expenditure of primary producers and other landholders

Guide to Subdivision 40‑G

40‑625  What this Subdivision is about

      You can deduct amounts for capital expenditure you incur:
         • on landcare operations; or
         • on electricity connections or telephone lines.

Table of sections

Operative provisions
40‑630 Landcare operations
40‑635 Meaning of landcare operation
40‑640 Meaning of approved management plan
40‑645 Electricity and telephone lines
40‑650 Amounts you cannot deduct under this Subdivision
40‑655 Meaning of connecting power to land or upgrading the connection and metering point
40‑660 Non‑arm's length transactions
40‑665 How this Subdivision applies to partners and partnerships
40‑670 Approval of persons as farm consultants
40‑675 Review of decisions relating to approvals

Operative provisions

40‑630  Landcare operations
 (1) You can deduct capital expenditure you incur at a time in an income year on a *landcare operation for:
 (a) land in Australia you use at the time for carrying on a *primary production business; or
 (b) rural land in Australia you use at the time for carrying on a *business for a *taxable purpose from the use of that land (except a business of *mining and quarrying operations).
Note: If Division 250 applies to you and an asset that is land:
(a) if section 250‑150 applies—you are taken not to be using the land for the purpose of carrying on a primary production business, or a business for the purpose of producing assessable income from the use of rural land (except a business of mining and quarrying operations), to the extent specified under subsection 250‑150(3); or
(b) otherwise—you are taken not to be using the land for such a purpose.
 (1A) A *rural land irrigation water provider can deduct capital expenditure it incurs at a time in an income year on a *landcare operation for:
 (a) land in Australia that other entities use at the time for carrying on *primary production businesses; or
 (b) rural land in Australia that other entities use at the time for carrying on *businesses for a *taxable purpose from the use of that land (except a business of *mining and quarrying operations);
being entities supplied with water by the rural land irrigation water provider.
 (1B) A rural land irrigation water provider is:
 (a) an *irrigation water provider; or
 (b) an entity whose *business is primarily and principally the supply (otherwise than by using a *motor vehicle) of water to entities for use in carrying on *businesses (except businesses of *mining and quarrying operations) using rural land in Australia.

Exception: plant
 (2) However, you cannot deduct an amount under this Subdivision for capital expenditure on *plant, except:
 (a) a fence erected for a purpose described in paragraph 40‑635(1)(a)