Document ID: chunk:federal_register_of_legislation:C2004C00927:clause:1_3:p13
Version: federal_register_of_legislation:C2004C00927
Segment Type: clause
Provision Reference: sch 1 cl 3 (pt 13/24)
Character Range: 442967–445798

section 90 of the Income Tax Assessment Act 1936.

[The next Subdivision is Subdivision 387‑D.]

Subdivision 387‑D—Establishing grapevines

387‑300  What this Subdivision is about

      You can deduct expenditure on establishing a grapevine that you own and use in a primary production business. You can usually deduct it over 5 income years.

Table of sections

Deductions

387‑305 Deduction for establishment of grapevine
387‑310 Expenditure on draining swamps and clearing land not counted
387‑315 Additional deduction if grapevine is destroyed
387‑320 Deductions for quasi-owners of land with grapevines

Deductions

387‑305  Deduction for establishment of grapevine

 (1) You can deduct an amount for an income year if:
 (a) an entity has incurred capital expenditure relating to the establishment of a grapevine in Australia for use in a *primary production business; and
 (b) you owned the grapevine, and used it in a *primary production business for the *purpose of producing assessable income, on at least one day during the income year.

Note 1: Various provisions may reduce the amount you can deduct or stop you deducting. For example, see:
  *    Division 26 of this Act (limiting deductions generally);
  *    section 387‑310 of this Act (preventing you deducting expenditure on draining swamps or low-lying land);
  *    Division 245 of Schedule 2C to the Income Tax Assessment Act 1936 (which may affect your entitlement to a deduction if your debts are forgiven).

Note 2: If you recoup an amount of the expenditure, the amount will be included in your assessable income. See Subdivision 20‑A.

Amount of deduction

 (2) The amount you can deduct for the income year is worked out using the formula:

where:

establishment expenditure is the amount of the capital expenditure 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 owned 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

 (3) 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.

387‑310  Expenditure on draining swamps and clearing land not counted

  When working out the amount of a deduction under this Subdivision, do not count expenditure incurred in draining swamp or low-lying land or in clearing land.

387‑315  Additional deduction if grapevine is destroyed

 (1) If a grapevine in Australia that you own and use in a *primary production business for the *purpose of producing assessable income is destroyed at any