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  • Establishment costs of grapevines

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    This information may not apply to the current year. Check the content carefully to ensure it is applicable to your circumstances.

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    Capital expenditure incurred in establishing grapevines in Australia is deductible. The expenditure does not include expenditure in draining swamps or low-lying land or in clearing land but it would include, for example:

    • the cost of preparing the land-that is, ploughing and topsoil enhancement
    • the cost of planting the vine itself and
    • the cost of the vine

    It is written off pro rata over a period of 4 years from the time the grapevines are established by the entity that owns them and uses them in primary production business to produce assessable income. If ownership of the grapevines changes, the deduction is available to the new owner while the grapevines are used in a primary production business. If a grapevine is destroyed before the end of the write-off period, a balancing deduction is available (Expenditure on grapevines established on Crown land held under lease can be eligible for deduction.) If any part of the expenditure is recouped, the amount may be included in assessable income.

    Last modified: 28 Oct 2003QC 27383