Document ID: chunk:federal_register_of_legislation:C2004C00958:clause:1_8:p3
Version: federal_register_of_legislation:C2004C00958
Segment Type: clause
Provision Reference: sch 1 cl 8 (pt 3/4)
Character Range: 648121–651059

A horticultural plant is a live member of the plant kingdom or fungus kingdom that is cultivated or propagated for any of its products or parts (including foliage, flowers, fruit, fruiting bodies, seeds, bulbs and spores).

 (2) A horticulture business is a *business of *horticulture.

 (3) Horticulture includes:

 (a) propagation and cultivation of a *horticultural plant in any environment (whether natural or artificial); and

 (b) propagation and cultivation of seeds, bulbs, spores and similar things; and

 (c) propagation and cultivation of fungi.

 (4) Use for commercial horticulture means use for the *purpose of producing assessable income in a *horticulture business.

387‑175  Meaning of effective life

 (1) If you own a *horticultural plant at the time (the starting time) when it is first used (or held ready for use) for *commercial horticulture, the effective life of the plant is worked out under whichever one of subsections (2) and (3) you choose.

 (2) If you choose this subsection, the plant's *effective life is the period for which the plant could reasonably be expected to be used for *commercial horticulture, worked out as at the starting time.

 (3) If you choose this subsection, the plant's *effective life is the period specified for that kind of *horticultural plant in a determination:

 (a) made by the Commissioner under section 387‑177; and

 (b) operating at the starting time.

You can choose this subsection only if any conditions that the determination specifies for that kind of horticultural plant are met at the starting time.

 (4) You make the choice for the first income year for which you can deduct under this Subdivision an amount relating to the *horticultural plant. You cannot change the choice (except under subsection 387‑177(3) because of a retrospective determination).

Note: If the plant's effective life was determined under section 124ZZK of the Income Tax Assessment Act 1936, it has the same effective life for the purposes of this Subdivision: see subsection 387‑160(3) of the Income Tax (Transitional Provisions) Act 1997.

387‑177  Determination of effective life by the Commissioner

 (1) The Commissioner may make written determinations for the purposes of subsection 387‑175(3). They may specify conditions relating to *horticultural plants.

Note: This subsection also allows the Commissioner to revoke or vary determinations: see subsection 33(3) of the Acts Interpretation Act 1901.

 (2) A determination relating to a kind of *horticultural plant may operate retrospectively, but only if:

 (a) it is the first determination relating to that kind of plant; or

 (b) the retrospectivity works to the advantage of entities in working out the effective life of that kind of plant.

 (3) If a determination operates retrospectively, you can choose to work out under subsection 387‑175(3) the *effective life of a *horticultural plant to which