Plants with effective life of three or more years



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

End of attention

Effective life

Annual write-off rate

Maximum write-off period

3 to less than 5 years


2 years 183 days

5 to less than 6 2/3 years


3 years 257 days

6 2/3 to less than 10 years


5 years

10 to less than 13 years


5 years 323 days

13 to less than 30 years


7 years 253 days

30 years or more


14 years 105 days

Where ownership of the horticultural plants changes, the new owner is entitled to continue claiming the balance of the capital expenditure incurred establishing the plants on the same basis.

Grapevines planted on or after 1 October 2004 are now dealt with under these provisions. The main changes are:

  • Deductions for the decline in value of a grapevine can only be claimed from the income year in which the grapevine's first commercial season starts, not when it is first used in a primary production business.
  • The decline in value of a grapevine will not be worked out at an annual rate of 25% but will be based on the effective life of the grapevine.

The Commissioner has determined effective lives for grapevines as follows:

Horticultural plants

Effective life (years)

Grapevines, dried


Grapevines, table


Grapevines, wine


Alternatively, a taxpayer can estimate their own effective life for grapevines.

Any recoupment of the expenditure is assessable income. Where the expenditure is deductible over more than one income year, special rules apply to determine the amount of any recoupment to be included in assessable income in the year of recoupment and later income years.

These deductions are not available to a partnership. Costs incurred by a partnership in establishing horticultural plants are allocated to each partner, who can then claim the relevant deduction in respect of their share of the expenditure.

Last modified: 31 Aug 2010QC 18464