Document ID: chunk:federal_register_of_legislation:C2004A00844:clause:1_6:p4
Version: federal_register_of_legislation:C2004A00844
Segment Type: clause
Provision Reference: sch 1 cl 6 (pt 4/18)
Character Range: 123951–126656

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 operations).

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) or (b); or
 (b) a dam or structural improvement (except a fence) covered by paragraph (1)(c), (d), (e) or (f) of the definition of plant in section 45‑40.

Reduction of deduction

 (3) You must reduce your deduction by a reasonable amount to reflect your use of the land in the income year after the time when you incurred the expenditure for a purpose other than the purpose of carrying on:
 (a) a *primary production business; or
 (b) a *business for the *purpose of producing assessable income from the use of rural land (except a business of *mining operations).

40‑635  Meaning of landcare operation

 (1) Landcare operation for land means:
 (a) erecting a fence to separate different land classes on the land in accordance with an *approved management plan for the land; or
 (b) erecting a fence on the land primarily and principally for the purpose of excluding animals from an area affected by land degradation:
 (i) to prevent or limit extension or worsening of land degradation in the area; and
 (ii) to help reclaim the area; or
 (c) constructing a levee or a similar improvement on the land; or
 (d) constructing drainage works on the land primarily and principally for the purpose of controlling salinity or assisting in drainage control; or
 (e) an operation primarily and principally for the purpose of:
 (i) eradicating or exterminating from the land animals that are pests; or
 (ii) eradicating, exterminating or destroying plant growth detrimental to the land; or
 (iii) preventing or fighting land degradation (except by erecting fences on the land); or
 (f) an extension, alteration or addition to an asset described in paragraph (a), (b), (c) or (d) or an extension of an operation described in paragraph (e).

 (2) Paragraph (1)(d) does not apply to an operation draining swamp or low‑lying land.

40‑640  Meaning of approved management plan

  An approved management plan for *land is a plan that:
 (a) shows the different classes within the land and the location of any fencing needed to separate any of the land classes to prevent land degradation; and
 (b) describes the kind of fencing and how it will prevent land degradation; and
 (c) has been prepared by, or approved in writing as a suitable plan for the land by: