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 124ZZH   124ZZH   HOW MUCH CAN BE DEDUCTED EACH YEAR?  
The amount of the section 124ZZG deduction is worked out using the following formula:


Annual write-off rate × Write-off days in year
Days in year
× Establishment expenditure

where:

Annual write-off rate is worked out under section 124ZZI .

Write-off days in year means the number of whole days in the year of income, where all of the following conditions are satisfied:

  • (a) throughout that day, the 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;
  • (b) the taxpayer owned the plant throughout that day;
  • (c) that day is within the maximum write-off period for the plant (worked out under section 124ZZI ).
  • Days in year means the number of days in the year of income.

    Establishment expenditure means the amount of establishment expenditure for the plant (worked out under section 124ZZJ ).


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