Document ID: chunk:federal_register_of_legislation:C2004C00927:clause:1_3:p9
Version: federal_register_of_legislation:C2004C00927
Segment Type: clause
Provision Reference: sch 1 cl 3 (pt 9/24)
Character Range: 432667–435510

expenditure, the amount will be included in your assessable income. See Subdivision 20‑A.

387‑60  Meaning of landcare operation for land

 (1) Landcare operation for land means:
 (a) erecting a fence (including an extension, alteration or addition to 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 (including an extension, alteration or addition to 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 with a similar use, on the land; or
 (d) constructing surface or subsurface drainage works on the land, if the construction is 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 of an operation described in paragraph (a), (b), (c), (d) or (e).

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

Limits on deductions

387-65  Limits on expenditure for which you can deduct

No deductions for expenditure on most plant

 (1) You cannot deduct an amount under this Subdivision for your capital expenditure on *plant, except:
 (a) a fence erected for a purpose described in paragraph 387‑60(1)(a) or (b); or
 (b) a dam or structural improvement (except a fence) covered by paragraph (c), (d), (e) or (f) of the definition of plant in subsection 42‑18(1).

Application of Common rule 2

 (2) Subdivision 41-B (which sets out Common rule 2 dealing with non-arm's length transactions) applies to expenditure on *landcare operations for land. However, subsection 41‑65(2) (about disposal of property) does not apply.

387-70  Reduced deduction if your use of the land changes

  Despite section 387-55, you can deduct only a reasonable amount under this Subdivision for your capital expenditure in an income year on *landcare operations for land if, at some time after you incurred the expenditure but during the income year, you used the land 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 or quarrying).

Partnerships

387‑75  How this Subdivision applies to partners and partnerships

Application

 (1)