Commonwealth of Australia Consolidated Acts Commonwealth of Australia Consolidated Acts(1) 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.
(2) 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:
where:
"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.
|
Item |
Effective life of: |
The write-off rate is: |
|
1 |
3 to fewer than 5 years |
40% |
|
2 |
5 to fewer than 62 / 3 years |
27% |
|
3 |
62 / 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
(3) 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 |
Time limit: |
|
|
1 |
3 to fewer than 5 years |
2 years and 183 days |
|
2 |
5 to fewer than 62 / 3 years |
3 years and 257 days |
|
3 |
62 / 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 |