Income Tax (Transitional Provisions) Act 1997



Division 40 - Capital allowances  

Subdivision 40-F - Primary production depreciating assets  

SECTION 40-515   Water facilities, grapevines and horticultural plants  

This section applies to you if you have deducted or can deduct an amount under Division 387 of the former Act for an amount (the qualifying amount ) of expenditure on any of these (the primary production asset ):

(a) the construction, manufacture, installation or acquisition of a water facility; or

(b) the establishment of horticultural plants; or

(c) the establishment of grapevines;

and you would have been able to deduct amounts for the qualifying amount for the income year in which 1 July 2001 occurs under the former Act if it had continued to apply.

Subdivision 40-F of the new Act applies to the primary production asset on this basis:

(a) the qualifying amount is taken to be:

(i) for a water facility - the amount of capital expenditure you incurred on the construction, manufacture, installation or acquisition of the water facility; or

(ii) for a horticultural plant or a grapevine - the amount of capital expenditure incurred that is attributable to the establishment of the plant or grapevine; and

(b) for horticultural plants, you use the effective life determined under section 387-175 of the former Act; and

(c) amounts that have been deducted or can be deducted for the qualifying amount under the former Act or the Income Tax Assessment Act 1936 are taken to be a decline in value under Subdivision 40-F of the new Act.


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