Document ID: chunk:federal_register_of_legislation:C2004C00927:clause:1_3:p8
Version: federal_register_of_legislation:C2004C00927
Segment Type: clause
Provision Reference: sch 1 cl 3 (pt 8/24)
Character Range: 429965–432931

apply the Subdivision under which the entity made the election to all future events as if it were that entity.

 (2) The partnership must make this election before it lodges its *income tax return for the income year in which the *business is transferred to it.

[The next Division is Division 387.]

Division 387—Capital allowances for primary producers and some land-holders

Table of Subdivisions

 Guide to Division 387
387-A Landcare operations
387-B Facilities to conserve or convey water
387-D Establishing grapevines
387-E Mains electricity supply
387-F Telephone lines
387-G Forestry roads and timber mill buildings

Guide to Division 387

387‑1  What this Division is about

      Primary producers, and some land-holders whose land is used for business, can deduct capital expenditure on some infrastructure, operations and plants under this Division. The period over which the expenditure can be deducted varies.

Subdivision 387-A—Landcare operations

Guide to Subdivision 387-A

387-50  What this Subdivision is about

      You can deduct your capital expenditure on landcare operations for:
           land that you use for a primary production business; or
           rural land that you use for business.
      You deduct the expenditure for the income year in which you incur it.

Table of sections

Deductions

387-55 Deductions for expenditure on landcare operations
387‑60 Meaning of landcare operation for land

Limits on deductions

387-65 Limits on expenditure for which you can deduct
387-70 Reduced deduction if your use of the land changes

Partnerships

387‑75 How this Subdivision applies to partners and partnerships

Approved management plans and farm consultants

387-80 Meaning of approved management plan
387-85 Approval of persons as farm consultants
387-90 Review of decisions relating to approvals

Deductions

387-55  Deduction for expenditure on landcare operations

 (1) You can deduct capital expenditure you incur at a particular time 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 the *purpose of producing assessable income from the use of that land (except a *business of mining or quarrying).

 (2) You deduct the expenditure for the income year in which you incur it.

Note 1: Various provisions of this Act may reduce the amount you can deduct or stop you deducting. For example, see:
  *    Division 26 (limiting deductions generally);
                  *    sections 387‑65 and 387‑70 (limiting your deductions under this Subdivision).

Note 2: If you recoup an amount of the expenditure, the amount will be included in your assessable income. See Subdivision 20‑A.

387‑60  Meaning of landcare operation for land

 (1) Landcare operation for land means:
 (a) erecting a fence (including an extension, alteration or addition to a fence) to