Section Sch20 — Income Tax Act 2007: Expenditure on farming, horticultural, aquacultural, and forestry improvements

Schedule 20 Expenditure on farming, horticultural, aquacultural, and forestry improvements ss DO 4 , DO 5 , DO 11 , DO 12 , DO 13 , DP 3 , DZ 17 , DZ 18 , YA 1 Improvement Percentage of diminished value of improvement allowed as deduction Part A Farming 1 unless clause 2 applies, preparation of the land for farming or agriculture, including cultivation and grassing 6 2 regrassing and fertilising all types of pasture in the course of a significant capital activity that relates to a type of pasture with an estimated useful life of more than 1 year 45 3 draining of swamp or low-lying lands 6 4 construction of access roads or tracks to or on the land 6 5 construction of dams, stopbanks, irrigation or stream diversion channels, or other improvements for the purpose of conserving or conveying water for use on the land or for preventing or combating soil erosion, other than planting or maintaining trees, whether or not on the land, for the purpose of providing shelter to the land 6 6 construction of earthworks, ponds, settling tanks, or other similar improvements mainly for the purpose of the treatment of waste products in order to prevent or combat pollution of the environment 6 7 sinking of bores or wells for the purpose of supplying water for use on the land 6 8 construction of aeroplane landing strips to facilitate aerial topdressing of the land 6 9 planting of non-listed horticultural plants on the land (see section 44C of the Tax Administration Act 1994) 12 10 erection on the land of electric power lines or telephone lines 12 11 construction on the land of feeding platforms, feeding yards, plunge sheep dips, or self-feeding ensilage pits 12 12 construction on the land of supporting frames for growing crops 12 13 construction on the land of structures for shelter purposes 12 Part B Freshwater fish farming 1 drilling of water bores 6 2 draining of land or the excavating of sites for ponds, races, or tanks 6 3 construction of ponds, races, settling ponds, sluices, or tanks of impervious materials to conduct or contain waters 6 4 supply and installation of pipes for water reticulation 6 5 construction of access paths, embankments, service paths, walkways, or walls 6 6 construction of effluent ponds 6 7 supply and installation of baffles or screens for the containing or excluding of fish 12 8 construction of fencing on the fish farm 12 Part C Mussel farming 1 acquisition, preparation, and mooring of pontoons or rafts or other floating structures for collecting spat 24 2 acquisition, mooring, and outfitting of moored floating platforms or longlines from which the collected spat is suspended for subsequent growth 24 3 collecting and depositing of shell or other suitable material on the sea bed to create spatting surfaces 24 Part D Rock oyster farming 1 acquisition and preparation of spatting sticks 24 2 construction and erection of posts, rails, or other structures for the holding of spatting sticks during spat catching and maturing 24 3 construction of fences (including breakwater fences) 24 Part E Scallop farming 1 acquisition, preparation, and mooring of floating structures for collecting spat 24 2 acquisition, mooring, and outfitting of longlines from which the collected spat is suspended for subsequent growth 24 Part F Sea-cage salmon farming 1 acquisition, preparation, and mooring of pontoons or rafts or other floating structures for securing or protecting cages or other containment vessels 24 2 acquisition, preparation, and placing of equipment or structures, including cages, nets, tanks, or other vessels, for the containment of live salmon 24 3 acquisition and placing of buoys and ropes used in the breeding or maturing of salmon 24 Part G Forestry 1 felling, clearing, destruction, or removal of timber, stumps, scrub, or undergrowth on the land in the preparation of the land for the planting of trees on the land 6 2 eradication or extermination, to enable the planting of trees on the land, of animal or vegetable pests on the land 6 3 destruction, to enable the planting of trees on the land, of weeds or plants detrimental to the land 6 4 draining of swamp or low-lying lands in the preparation of the land for the planting of trees on the land 6 5 construction of roads to or on the land (including any culverts or bridges necessary for the construction), when the roads are formed and wholly or mainly metalled or sealed 6 6 construction of roads to or on the land (including any culverts or bridges necessary for the construction), when the roads— (a) are not access tracks to which section DP 1(1)(h) applies; and (b) are 1 of the following: (i) roads that are formed and partially metalled or sealed; or (ii) roads that are not metalled or sealed 24 7 construction of dams, stopbanks, irrigation or stream diversion channels, or other improvements for the purpose of conserving or conveying water for use on the land or for preventing or combating soil erosion 6 8 repair of flood or erosion damage 6 9 sinking of bores or wells for the purpose of supplying water for use on the land 6 10 construction of aeroplane landing strips to facilitate aerial topdressing or disease control work or firefighting on the land 6 11 construction on the land of fences, including the purchase of wire or wire netting for the purpose of making new or existing fences rabbit-proof 12 12 erection on the land of electric power lines or telephone lines 12 Schedule 20 part G clause 6(a): amended (with effect on 1 April 2008), on 29 August 2011 (applying for the 2008–09 and later income years), by section 140(1) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63). Schedule 20: amended (with effect on 1 April 2008), on 6 October 2009, by section 582(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34). Schedule 20: amended (with effect on 1 April 2008), on 6 October 2009, by section 582(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).