Income Tax Assessment Act 1936


Division 3 - Deductions  

Subdivision H - Period of deductibility of certain advance expenditure  


82KZMG(1)   [ Timing of deduction]  

Sections 82KZMD and 82KZMF do not affect the timing of a deduction for expenditure incurred by a taxpayer in a year of income (the expenditure year ) to the extent that the requirements of this section are met.

82KZMG(2)   General requirements for expenditure.  

There are these requirements for the expenditure:

(a) it must be incurred on or after 2 October 2001 and on or before 30 June 2008 under an agreement; and

(b) the eligible service period for the expenditure must be 12 months or shorter and must end on or before the last day of the year of income after the expenditure year; and

(c) it must be incurred in return for the doing of a thing under the agreement that is not to be wholly done within the expenditure year.

82KZMG(3)   Requirements for agreement.  

There are these requirements for the agreement:

(a) the agreement must be for planting and tending trees for felling; and

(b) the taxpayer must not have day to day control over the operation of the agreement (whether or not the taxpayer has the right to be consulted or give directions); and

(c) at least one of these must be satisfied:

(i) there is more than one participant in the agreement in the same capacity as the taxpayer;

(ii) the person (the manager ) who manages, arranges or promotes the agreement, or an associate of that person, manages, arranges or promotes similar agreements for other taxpayers.

82KZMG(4)   Requirements for expenditure.  

The expenditure incurred by the taxpayer must be paid for seasonally dependent agronomic activities undertaken by the manager during the establishment period for the relevant planting of trees for felling.


Examples of seasonally dependent agronomic activities include:

  • tending the seedlings prior to planting, and planting them;
  • ripping and mounding the site where the planting is to occur;
  • applying fertiliser, herbicide or pesticide in conjunction with the planting.
  • 82KZMG(5)   [ Establishment period]  

    The establishment period for a particular planting of trees starts on the day when the first seasonally dependent agronomic activity for that planting is done and ends on the later of:

    (a) the day when the last seedling is planted as part of that planting, not including replacement of seedlings already planted; and

    (b) the day when any fertiliser, herbicide or pesticide is applied to the seedlings in conjunction with that planting.


    Disclaimer and notice of copyright applicable to materials provided by CCH Australia Limited

    CCH Australia Limited ("CCH") believes that all information which it has provided in this site is accurate and reliable, but gives no warranty of accuracy or reliability of such information to the reader or any third party. The information provided by CCH is not legal or professional advice. To the extent permitted by law, no responsibility for damages or loss arising in any way out of or in connection with or incidental to any errors or omissions in any information provided is accepted by CCH or by persons involved in the preparation and provision of the information, whether arising from negligence or otherwise, from the use of or results obtained from information supplied by CCH.

    The information provided by CCH includes history notes and other value-added features which are subject to CCH copyright. No CCH material may be copied, reproduced, republished, uploaded, posted, transmitted, or distributed in any way, except that you may download one copy for your personal use only, provided you keep intact all copyright and other proprietary notices. In particular, the reproduction of any part of the information for sale or incorporation in any product intended for sale is prohibited without CCH's prior consent.