Commonwealth Consolidated Acts

INCOME TAX ASSESSMENT ACT 1997 - SECT 393.5

Entitlement to deduction

  (1)   You can deduct the amount of a * farm management deposit for an income year if:

  (a)   you are the * owner of the deposit; and

  (b)   the deposit is made at a time during the year when you are an individual carrying on a * primary production business in Australia; and

  (c)   if during the year, at a time after the deposit was made, you stopped carrying on a primary production business in Australia--you started carrying on such a business again within 120 days (whether or not during the year); and

  (d)   your * taxable non - primary production income for the year is not more than $100,000; and

  (e)   you do not die or become bankrupt during the year.

Note 1:   This section does not apply if a deposit is reinvested, the term of a deposit is extended, or a deposit is transferred at the depositor's request: see sections   393 - 15 and 393 - 16.

Note 2:   This Division applies to certain partners and beneficiaries as if they were individuals who carried on a primary production business: see subsections   393 - 25(2), (3), (4), (5) and (6).

Sum of deductions not to exceed taxable primary production income

  (2)   The sum of the deductions that you would otherwise be entitled to under this section for * farm management deposits made in the income year must not exceed your * taxable primary production income for the income year.

Amounts to be deducted in order of deposits

  (3)   If you are entitled to deduct amounts in respect of 2 or more deposits, deduct the amounts in the order in which the deposits were made (until you reach the limit imposed by subsection   (2)).