Income Tax Assessment Act 1997



Division 40 - Capital allowances  

Subdivision 40-F - Primary production depreciating assets  

Operative provisions

SECTION 40-545   How you work out the decline in value for horticultural plants  

The decline in value of a * horticultural plant for the income year in which it starts to decline in value is all of the capital expenditure attributable to the establishment of the plant if its * effective life is less than 3 years.

You work out the decline in value for an income year of a * horticultural plant whose * effective life is 3 years or more in this way:

× Write-off days in income year
× Write-off rate


establishment expenditure is the amount of capital expenditure incurred that is attributable to the establishment of the * horticultural plant.

write-off days in income year is the number of days in the income year on which you satisfied a condition in subsection 40-525(2) for the plant and either used it for * commercial horticulture or held it ready for that use.

write-off rate is the rate shown in this table for the * horticultural plant according to its * effective life.

Write-off rate for horticultural plant
Item Effective life of: The write-off rate is:
1 3 to fewer than 5 years 40%
2 5 to fewer than 6 2/3 years 27%
3 6 2/3 to fewer than 10 years 20%
4 10 to fewer than 13 years 17%
5 13 to fewer than 30 years 13%
6 30 years or more 7%

Limit on write-off days

Disregard your use of the * horticultural plant on a day outside the period that:

(a) starts when the plant can first be used for * commercial horticulture; and

(b) extends for the time shown in this table (depending on the plant's * effective life).

Period after which you cannot count use of horticultural plant
Item Effective life: Time limit:
1 3 to fewer than 5 years 2 years and 183 days
2 5 to fewer than 6 2/3 years 3 years and 257 days
3 6 2/3 to fewer than 10 years 5 years
4 10 to fewer than 13 years 5 years and 323 days
5 13 to fewer than 30 years 7 years and 253 days
6 30 years or more 14 years and 105 days


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