Document ID: chunk:federal_register_of_legislation:C2025C00029:section:3:p2
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 3 (pt 2/2)
Character Range: 1025422–1027200

artificial); and
 (b) propagation and cultivation of seeds, bulbs, spores and similar things; and
 (c) propagation and cultivation of fungi.
 (2) Use for commercial horticulture means use for the *purpose of producing assessable income in a *business of *horticulture.

40‑540  How you work out the decline in value for water facilities
 (1) The decline in value of a *water facility for the income year in which you incurred the expenditure is the amount of capital expenditure you incurred on the construction, manufacture, installation or acquisition of the water facility.
 (2) However, disregard expenditure that you cannot deduct because of section 26‑100 (about water infrastructure improvement expenditure).

40‑545  How you work out the decline in value for horticultural plants
 (1) The decline in value of a *horticultural plant for the income year in which it starts to decline in value is all of the capital expenditure attributable to the establishment of the plant if its *effective life is less than 3 years.
 (2) You work out the decline in value for an income year of a *horticultural plant whose *effective life is 3 years or more in this way:

where:
establishment expenditure is the amount of capital expenditure incurred that is attributable to the establishment of the *horticultural plant.
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(2) for the plant and either used it for *commercial horticulture or held it ready for that use.
write‑off rate is the rate shown in this table for the *horticultural plant according to its *effective life.

Write‑off rate for horticultural plant
Item                                    Effective life of:           The write‑off rate is: