Document ID: chunk:federal_register_of_legislation:C2004A00844:clause:1_6:p1
Version: federal_register_of_legislation:C2004A00844
Segment Type: clause
Provision Reference: sch 1 cl 6 (pt 1/18)
Character Range: 116244–119023

6                                                               30 years or more             14 years and 105 days

40‑550  How you work out the decline in value for grapevines

 (1) You work out the decline in value of a grapevine in this way:
where:

establishment expenditure is the amount of capital expenditure incurred that is attributable to the establishment of the grapevine.

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(3) for the grapevine and used it in a *primary production business for the *purpose of producing assessable income.

No deduction for period more than 4 years after grapevine established

 (2) Disregard your use of the grapevine on a day that is more than 4 years after the grapevine was established.

Note: That 4‑year period will be spread over 5 income years, unless the grapevine is established on the first day of an income year.

Exception where you work out decline under section 40‑545

 (3) You cannot work out the decline in value of a grapevine under this section if you work out its decline in value under section 40‑545 (about horticultural plants).

40‑555  Amounts you cannot deduct

Water facilities

 (1) You cannot deduct an amount for any income year for capital expenditure on the acquisition of a *water facility if any person has deducted or can deduct an amount under this Subdivision for any income year for earlier capital expenditure on:
 (a) the construction or manufacture of the facility; or
 (b) a previous acquisition of the facility.

 (2) A *water facility and an alteration, addition or extension to that facility are not the same water facility for the purposes of subsection (1).

Horticultural plants and grapevines

 (3) In working out your deduction under this Subdivision for a *horticultural plant or a grapevine, disregard expenditure incurred:
 (a) in draining swamp or low‑lying land; or
 (b) in clearing land.

40‑560  Non‑arm's length transactions

  If you incurred capital expenditure under an *arrangement and:
 (a) there is at least one other party to the arrangement with whom you did not deal at *arm's length; and
 (b) apart from this section, the amount of the expenditure would be more than the *market value of what it was for;
the amount of expenditure you take into account under this Subdivision is that market value.

40‑565  Extra deduction for destruction of a horticultural plant or grapevine

 (1) You can deduct the amount worked out under subsection (2) for a *horticultural plant or a grapevine for an income year if:
 (a) for a horticultural plant—its *effective life is 3 years or more and it is destroyed during the income year while you own it and use it for *commercial horticulture; or