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INCOME TAX ASSESSMENT ACT 1997 - SECT 393.60

Repayment if owner of farm management deposit with insolvent ADI dies, is bankrupt or ceases to be a primary producer

    Subsection   393 - 10(4) does not apply in relation to so much of a * farm management deposit with an * ADI as is equal to the sum of the amounts described in subparagraphs   (d)(i) and (ii) of this section if:

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

  (b)   the deposit becomes repayable during an income year because of the requirement contained in the relevant agreement as set out in item   11 of the table in section   393 - 35 (death, bankruptcy etc.); and

  (c)   during the income year, the ADI becomes a declared ADI under Division   2AA (Financial claims scheme for account - holders with insolvent ADIs) of Part   II of the Banking Act 1959 ; and

  (d)   at the end of the income year, you have either or both of the following:

  (i)   an unmet entitlement under that Division connected with the account for the farm management deposit;

  (ii)   an unmet claim against the ADI, or an unpaid debt owed to you by the ADI, in the winding up of the ADI connected with the account for the deposit.

Note:   Subsection   393 - 10(4) makes the repayment of a farm management deposit assessable in the income year when the death, bankruptcy etc. occurs, rather than in any later year in which it might be repaid.


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