INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART III - LIABILITY TO TAXATION  

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

Subdivision C - Annual deduction where the effective life of a plant is 3 or more years  

SECTION 124ZZG  

124ZZG   WHEN CAN A TAXPAYER GET AN ANNUAL 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 3 or more; and

(c) at a particular time during a year of income, a taxpayer used the plant, or held 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; and

(e) that time is within the maximum write-off period for the plant;

the amount worked out under section 124ZZH 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:

Maximum write-off period is defined by section 124ZZI .