Income Tax (Transitional Provisions) Act 1997

CHAPTER 2 - LIABILITY RULES OF GENERAL APPLICATION  

PART 2-10 - CAPITAL ALLOWANCES: RULES ABOUT DEDUCTIBILITY OF CAPITAL EXPENDITURE  

Division 40 - Capital allowances  

Subdivision 40-F - Primary production depreciating assets  

SECTION 40-515   Water facilities, grapevines and horticultural plants  

40-515(1)    
This section applies to you if you have deducted or can deduct an amount under Division 387 of the former Act for an amount (the qualifying amount ) of expenditure on any of these (the primary production asset ):

(a) the construction, manufacture, installation or acquisition of a water facility; or

(b) the establishment of horticultural plants; or

(c) the establishment of grapevines;

and you would have been able to deduct amounts for the qualifying amount for the income year in which 1 July 2001 occurs under the former Act if it had continued to apply.

40-515(2)    
Subdivision 40-F of the new Act applies to the primary production asset on this basis:

(a) the qualifying amount is taken to be:

(i) for a water facility - the amount of capital expenditure you incurred on the construction, manufacture, installation or acquisition of the water facility; or

(ii) for a horticultural plant or a grapevine - the amount of capital expenditure incurred that is attributable to the establishment of the plant or grapevine; and

(b) for horticultural plants, you use the effective life determined under section 387-175 of the former Act; and

(c) amounts that have been deducted or can be deducted for the qualifying amount under the former Act or the Income Tax Assessment Act 1936 are taken to be a decline in value under Subdivision 40-F of the new Act.