Document ID: chunk:federal_register_of_legislation:C2004C00958:clause:1_8:p1
Version: federal_register_of_legislation:C2004C00958
Segment Type: clause
Provision Reference: sch 1 cl 8 (pt 1/4)
Character Range: 642875–645836

8  Section 387‑150 (link note)
Repeal the link note, substitute:

Subdivision 387‑C—Establishing horticultural plants

Guide to Subdivision 387‑C

387‑160  What this Subdivision is about

      You can deduct capital expenditure on establishing a horticultural plant that you own and use for commercial horticulture. The period over which you can deduct the expenditure depends on the effective life of the plant.

Table of sections

Deductions

387‑162 Simplified outline
387‑165 Deduction for expenditure relating to establishment of a horticultural plant
387‑170 Meaning of horticultural plant, horticulture business, horticulture and commercial horticulture
387‑175 Meaning of effective life
387‑177 Determination of effective life by the Commissioner
387‑180 Immediate write‑off for a horticultural plant with an effective life under 3 years
387‑185 Deduction for a horticultural plant with an effective life of 3 years or more
387‑190 Extra deduction for income year of destruction of a horticultural plant with an effective life of 3 years or more
387‑195 Expenditure you cannot deduct

Change of ownership

387‑205 Getting tax information if you acquire a horticultural plant (regardless of its effective life)

Lessees and licensees of land with horticultural plants are treated as owners

387‑210 Lessees and licensees of land are treated as if they own horticultural plants on the land

387‑162  Simplified outline

 (1) To get a deduction:

 (a) you must own the horticultural plant and use it (or hold it ready for use) for commercial horticulture; and

 (b) the expenditure must not be otherwise deductible.

It does not matter who incurred the expenditure.

 (2) If the plant's effective life is less than 3 years, you can deduct all the expenditure in the income year when the plant is first used (or held ready for use) for commercial horticulture.

 (3) If the effective life is 3 years or more:

 (a) you get an annual deduction for the expenditure, worked out on a prime cost basis; and

 (b) you can get a special deduction if the plant is destroyed before you have deducted all the expenditure.

 (4) If a horticultural plant changes hands, the new owner can require the old owner to provide information to help the new owner work out his or her deductions.

[This is the end of the Guide.]

Deductions

387‑165  Deduction for expenditure relating to establishment of a horticultural plant

 (1) You can deduct an amount for the *current year for capital expenditure attributable to the establishment of a *horticultural plant in Australia for use in a *horticulture business. (It does not matter who incurred the expenditure.)

Note: Section 387‑195 prevents you deducting:

                  * expenditure on draining swamps or low‑lying land; and

                  * expenditure for which you can get a deduction under other provisions.

First entity to use the plant for commercial horticulture

 (2)