Document ID: chunk:federal_register_of_legislation:C2004C00958:clause:1_6:p1
Version: federal_register_of_legislation:C2004C00958
Segment Type: clause
Provision Reference: sch 1 cl 6 (pt 1/3)
Character Range: 654894–657897

6                                                               30 years or more                                        14 years and 105 days

387‑190  Extra deduction for income year of destruction of a horticultural plant with an effective life of 3 years or more

 (1) You can deduct the amount worked out under subsection (2) for an income year if:

 (a) the *effective life of the *horticultural plant is 3 years or more; and

 (b) the plant is destroyed during the income year while you own it and use it for *commercial horticulture.

 (2) Work out your deduction as follows:

      Method statement

           Step 1. Work out the total of the amounts you could have deducted under section 387‑165 for the expenditure if you had owned the *horticultural plant and used it for *commercial horticulture for the whole of the period:

                (a) starting when the plant could first be used for commercial horticulture; and

                (b) ending when the plant was destroyed.

           Step 2. Subtract from the establishment expenditure worked out under section 387‑185:

                (a) the result from Step 1; and

                (b) any amount you received (under an insurance policy or otherwise) for the destruction of the *horticultural plant.

            The remaining amount (if any) is your deduction under subsection (1).

Note: In Step 1 you must take into account any amounts you could have deducted if section 387‑165 had applied to assessments for income years before the 1998‑99 income year: see section 387‑190 of the Income Tax (Transitional Provisions) Act 1997.

 (3) This deduction is in addition to any deduction for the income year under section 387‑165 for expenditure on establishing the *horticultural plant.

387‑195  Expenditure you cannot deduct

Expenditure on draining swamps or clearing land

 (1) You cannot deduct an amount for any income year under this Subdivision for expenditure incurred:

 (a) in draining swamp or low‑lying land; or

 (b) in clearing land.

Expenditure deductible under other provisions

 (2) You cannot deduct an amount under this Subdivision for any income year for expenditure to the extent that:

 (a) you or another entity can deduct an amount for the expenditure under a provision of this Act (outside this Subdivision) for any income year; or

 (b) the expenditure is taken into account in working out a deduction for depreciation; or

 (c) the expenditure is part of a pool of *construction expenditure.

Note 1: However, a deduction for an income year before 1998‑99 under Division 10F of Part III of the Income Tax Assessment Act 1936 (which deals with horticultural plants) does not prevent you from deducting an amount under this Subdivision: see section 387‑195 of the Income Tax (Transitional Provisions) Act 1997.

Note 2: Deductions for depreciation are worked out under Division 42.

Note 3: Construction expenditure in a pool of construction expenditure is deducted under