INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART III - LIABILITY TO TAXATION  

Division 10F - Deduction for capital expenditure incurred in establishing horticultural plants  

Subdivision B - 100% deduction where the effective life of a plant is less than 3 years  

SECTION 124ZZF  

124ZZF   WHEN CAN A TAXPAYER GET A 100% DEDUCTION FOR ESTABLISHMENT EXPENDITURE?  
If:

(a) there is an amount of establishment expenditure for a horticultural plant; and

(b) the number of years in the effective life of the plant is less than 3; and

(c) at a particular time during a year of income, a taxpayer became the first entity to use the plant, or to hold the plant ready for use:

(i) for the purpose of producing assessable income; and

(ii) in a business of horticulture; and

(d) the taxpayer owned the plant at that time;

100% of the establishment expenditure is allowable as a deduction to the taxpayer for the year of income.

Note 1:

Establishment expenditure is defined by section 124ZZJ .

Note 2:

Effective life is defined by section 124ZZK .

Note 3:

Ownership is given an extended meaning in relation to leases and licences by section 124ZZQ .

Note 4:

Entity is defined by section 124ZZR .