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DO 6: Expenditure on land: horticultural replacement planting
or “Tax deduction for replacing plants in horticultural businesses”
You could also call this:

“Rules for tracking spending on horticultural plants for tax deductions”

If you have had a deduction under section DO 6 in one or both of the last two years, you need to keep separate accounts for your listed horticultural plants under sections DO 5 and DO 6. This applies if you buy new listed horticultural plants that help your business this year, as long as they are not replacement plants.

However, if you haven’t had any deductions under section DO 6 in the last two years, you can account for all your listed horticultural plants as one group under sections DO 5 and DO 6.

This rule helps you keep track of your spending on different types of horticultural plants for tax purposes.

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Next up: DO 8: Meaning of planting and plot

or “Explanation of 'planting' and 'plot' for horticultural businesses in tax reporting”
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Part D Deductions
Farming and aquacultural business expenditure

DO 7Accounting for expenditure on listed horticultural plants under sections DO 5 and DO 6

  1. A person to whom section DO 5 applies must, for an income year and for later income years for which subsection (2) does not apply, account separately under sections DO 5 and DO 6 for listed horticultural plants if—

  2. the person has had a deduction under section DO 6 for 1 or both of the 2 income years preceding the income year; and
    1. the person acquires the listed horticultural plants in the income year; and
      1. the listed horticultural plants benefit the business of the person in the income year; and
        1. the listed horticultural plants are not replacement plants.

          1. Despite subsection (1), a person may account under sections DO 5 and DO 6 for listed horticultural plants as 1 planting for an income year and later income years if the person has had no deduction under section DO 6 for both of the 2 income years preceding the income year.

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