Document ID: chunk:federal_register_of_legislation:C2010C00691:body:0:p50
Version: federal_register_of_legislation:C2010C00691
Segment Type: other
Provision Reference: 
Character Range: 121736–124384

for the year of income.
Subsection (1) formula
  "(2) The formula mentioned in subsection (1) is:
  0.25  X  Qualifying days in year of income  X  Qualifying expenditure
                 Days in year of income
where:
  'Qualifying days in year of income' means the number of whole days in the
year of income when the taxpayer owned the vine and used it in a business of
primary production for the purpose of gaining or producing assessable income;
  'Days in year of income' means the number of days in the year of income;
  'Qualifying expenditure' means the amount of qualifying expenditure.
  4-year limit for write-off
  "(3) For the purposes of determining the amount of the deduction allowable
to a taxpayer under subsection (1) in respect of an amount of qualifying
expenditure in respect of the establishment of a grape vine, the taxpayer is
taken not to have used the vine for the purpose of gaining or producing
assessable income at any time after the end of the period of 4 years beginning
on the day on which the vine was established.
Qualifying expenditure
  "(4) If:
  (a) a person has incurred expenditure of a capital nature wholly or partly
in respect of the establishment of a grape vine in Australia for use in a
business of primary production; and
  (b) the expenditure was incurred on or after 1 July 1993;
then, for the purposes of this section, so much of the amount of the
expenditure as is attributable to the establishment of the vine is taken to be
an amount of qualifying expenditure in respect of the establishment of the
vine.
Exclusion of expenditure incurred in draining or clearing land
  "(5) A reference in this section to capital expenditure in respect of the
establishment of a grape vine does not include a reference to expenditure
incurred in:
  (a) draining swamp or low-lying land; or
  (b) clearing land.
Destruction of grape vine
  "(6) If:
  (a) there is an amount of qualifying expenditure in respect of the
establishment of a grape vine; and
  (b) during a year of income, the vine is destroyed; and
  (c) immediately before the destruction, a taxpayer owned the vine and used
it in a business of primary production for the purpose of gaining or producing
assessable income;
then:
  (d) if an amount (the 'recoverable amount') was or is received or receivable
by the taxpayer (under a policy of insurance or otherwise) in respect of the
destruction-so much of the amount worked out using the formula set out in
subsection (7) as exceeds the recoverable amount is allowable as a deduction
to the taxpayer for the year of income; or
  (e) in any other case-the amount worked out using the formula set out