Who can claim
This deduction is available to individuals and companies.
- The plant or grapevine is owned and used in a primary production business to produce assessable income.
- The establishment expenditure, effective life and date the plant can first be used or held ready for commercial horticulture can be identified.
What you cannot claim
- Land, ordinary trading stock and expenditure already recognised under another capital-allowance rule are excluded.
- Partnership expenditure can require allocation to partners rather than a partnership deduction.
How the amount is worked out
If effective life is less than 3 years, deduct eligible establishment expenditure when the plant starts to decline in value. Otherwise use the section 40-545 rate: 40% for 3 to under 5 years; 27% for 5 to under 6⅔ years; 20% for 6⅔ to under 10 years; 17% for 10 to under 13 years; 13% for 13 to under 30 years; or 7% for 30 years or more. Apply the rate for eligible days from when the plant can first be used or held ready for commercial horticulture. Apply the specific grapevine, ownership-change, destruction, partnership and recoupment rules where relevant.
Records the ATO expects
- Establishment invoices
- Commercial-horticulture start date
- Effective-life support
- Ownership and partnership records
- Destruction and recoupment records
Where this rule comes from
Primary source: Income Tax Assessment Act 1997 section 40-545 (Section 40-545). Reviewed 30 July 2026. Covers the 2025-26 and 2026-27 income years.
Supporting sources:
- ATO Guide to depreciating assets 2025 (Guide to depreciating assets 2025)