INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART III - LIABILITY TO TAXATION  

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

Subdivision D - Establishment expenditure for a plant  

SECTION 124ZZJ   WHAT COUNTS AS ESTABLISHMENT EXPENDITURE FOR A PLANT?  

124ZZJ(1)   Basic definition.  

For the purposes of this Division, if:

(a) an entity has incurred expenditure of a capital nature wholly or partly in respect of the establishment of a horticultural plant in Australia for use in a business of horticulture; and

(b) the expenditure was incurred on or after 10 May 1995;

so much of the amount of the expenditure as is attributable to the establishment of the plant is taken to be an amount of establishment expenditure for the plant.

Note:

Entity is defined by section 124ZZR .

124ZZJ(2)   Exclusion of drainage and land-clearance costs.  

A reference in this section to capital expenditure in respect of the establishment of a horticultural plant does not include a reference to expenditure incurred in:

(a) draining swamp or low-lying land; or

(b) clearing land.

124ZZJ(3)   Exclusion of otherwise deductible costs.  

Expenditure is taken not to be establishment expenditure in respect of the establishment of a horticultural plant to the extent to which a deduction is allowable in respect of that expenditure under a provision of this Act other than section 124ZZF or 124ZZG .

124ZZJ(4)   Exclusion of depreciable costs.  

Expenditure is taken not to be establishment expenditure in respect of the establishment of a horticultural plant to the extent to which the expenditure is taken into account in calculating an amount of depreciation that is allowable as a deduction.

124ZZJ(5)   Exclusion of qualifying expenditure with the meaning of Division 10D .  

Expenditure is taken not to be establishment expenditure in respect of the establishment of a horticultural plant to the extent to which the expenditure:

(a) is qualifying expenditure within the meaning of Division 10D of this Act; or

(b) is part of a pool of construction expenditure within the meaning of Division 43 of the Income Tax Assessment Act 1997 .

Note:

Those Divisions deal with buildings, structural improvements and other capital works.