Commonwealth Numbered Acts

LOAN (INCOME EQUALIZATION DEPOSITS) AMENDMENT ACT 1984 No. 173, 1984 - SECT 2

2. Section 3 of the Principal Act is amended-
(a) by omitting from sub-section (1) the definitions of "authorized person"
and "Board of Review" and substituting the following definitions:



" 'Assessment Act' means the Income Tax Assessment Act 1936;

" 'authorized person' means the Secretary to the Department;

" 'bond' means a Treasury Bond, or Stock, within the meaning of the
Commonwealth Inscribed Stock Act 1911;

" 'bond series' means bonds of the same maturity date and interest rate;

" 'Class A interest deposit limit', in relation to a person in relation to a
year of income, means the Class A interest deposit limit ascertained in
relation to the person in relation to the year of income under section 4B;

" 'Class A interest rate', in relation to a quarter, means the rate that is 2
percentage points above the short-term bond rate in relation to the quarter;

" 'Class B deposit' means a deposit other than-

   (a)  a primary producer deposit; or

   (b)  a Class C deposit;

" 'Class B interest rate', in relation to a quarter, means the rate that is 3
percentage points below the short-term bond rate in relation to the quarter;

" 'Class C deposit' means a deposit made before 1 September 1983 but does not
include such a deposit, or the part (if any) of such a deposit, that has been
converted under section 12A;

" 'Class C interest rate', means-

   (a)  in relation to the period commencing on the date of commencement of
        the Loan (Income Equalization Deposits) Amendment Act 1984 and ending
        on 31 August 1984-7.5% per annum;

   (b)  in relation to the period commencing on 1 September 1984 and ending on
        31 August 1985-5.5% per annum;

   (c)  in relation to the period commencing on 1 September 1985 and ending on
        31 August 1986-3.5% per annum; and

   (d)  in relation to the period commencing on 1 September 1986 and ending on
        31 August 1987-1.5% per annum;

" 'Commissioner' means the Commissioner of Taxation;

" 'conversion application' means-

   (a)  an application under section 12 of this Act, as in force before the
        commencement of the
        Loan (Income Equalization Deposits) Amendment Act 1984 , in respect of
        the conversion of the whole or a part of
a parcel of stock into a deposit; or

   (b)  an application under section 12A of this Act in respect of the
        conversion of the whole or a part of a deposit, or of a parcel of
        stock, into a non-Class C deposit;

" 'conversion deposit' means a deposit resulting from-

   (a)  the conversion at any time during the period commencing on 1 September
        1983 and ending immediately before the date of commencement of the
        Loan (Income Equalization Deposits) Amendment Act 1984 of the whole or
        a part of a parcel of stock under section 12 of this Act; or

   (b)  the conversion at any time of the whole or a part of a deposit or of a
        parcel of stock under section 12A of this Act;

" 'declaration date', in relation to a qualifying bond series, means the date
on which the result of the successful tender in respect of the bond series was
declared;";

   (b)  by inserting after the definition of "deposit" in sub-section (1) the
        following definitions:



" 'eligible primary producer' means-

   (a)  a natural person who, or a company that, carries on in Australia a
        business of primary production otherwise than as trustee of a trust
        estate;

   (b)  a partner in a partnership that carries on in Australia a business of
        primary production; and

   (c)  a beneficiary of a trust estate the trustee of which carries on in
        Australia a business of primary production;

" 'gross receipts from primary production', in relation to a person in
relation to a year of income, has the same meaning as in Division 16C of Part
III of the Assessment Act, as in force immediately before the date of
commencement of the Loan (Income Equalization Deposits) Amendment Act 1984 ;

" 'income certificate' means a notice of a determination issued by the
Commissioner to the authorized person under section 4D;

" 'income from property' has the same meaning as in the Assessment Act;

" 'last declared bond series', in relation to 2 or more qualifying bond
series, means-

   (a)  if the declaration date of all the bond series is the same date-each
        of the bond series; and

   (b)  in any other case-the bond series, or each of the bond series, of
        which the declaration date is not earlier than the declaration date of
        any of the other bond series;

" 'lowest yield bond series', in relation to 2 or more qualifying bond series,
means-

   (a)  if all the bond series have the same weighted average yield-each of
        the bond series; and

   (b)  in any other case-the bond series, or each of the bond series, of
        which the weighted average yield is not greater than the weighted
        average yield of any of the other bond series;

" 'non-Class C deposit' means a deposit other than a Class C deposit;

" 'non-conversion deposit' means a deposit other than a conversion deposit;

" 'owner', in relation to a deposit, means-

   (a)  in the case of a deposit made by the trustee of a trust estate on
        behalf of a beneficiary-the beneficiary; and

   (b)  in any other case-the person who made the deposit;

" 'partnership' has the same meaning as in the Assessment Act;

" 'primary producer deposit' means-

   (a)  a non-conversion deposit made on or after 1 September 1983 the owner
        of which was an eligible primary producer at the time of the making of
        the application for the deposit;

   (b)  where-

        (i)    the owner of a conversion deposit that resulted from the
               conversion of the whole or a part of a deposit (in this
               paragraph referred to as the 'original deposit') was an
               eligible primary producer at the time of the making of the
               conversion application; and

        (ii)   an unrecouped income tax deduction existed in respect of the
               original deposit immediately before the time of conversion,
so much of the conversion deposit as is equal to the amount of the unrecouped
income tax deduction or, if the conversion deposit resulted from the
conversion of part only of the original deposit, so much of the conversion
deposit as is equal to the amount that bears to the amount of the unrecouped
income tax deduction the same proportion as the part of the original deposit
that was converted bears to the whole of the original deposit; and

   (c)  where-

        (i)    the owner of a conversion deposit that resulted from the
               conversion of the whole or a part of a parcel of stock was an
               eligible primary producer at the time of making of the
               conversion application; and

        (ii)   an unrecouped deduction under Division 16B of Part III of the
               Assessment Act existed in respect of the parcel immediately
               before the time of conversion,
so much of the conversion deposit as is equal to the amount of the unrecouped
deduction or, if the conversion deposit resulted from the conversion of part
only of a parcel of stock, so much of the conversion deposit as is equal to
the amount that bears to the amount of the unrecouped deduction the same
proportion as that part of the parcel bears to the whole of the parcel;

" 'primary production' has the same meaning as in the Assessment Act;

" 'qualifying bond series', in relation to a quarter, means a bond series-

   (a)  in respect of which a successful tender has been declared during the
        period of 3 months immediately preceding the quarter; and

   (b)  with a period to maturity of less than 5 years;

" 'quarter' means a period of 3 months commencing on 1 January, 1 April, 1
July or 1 October;

" 'reduced taxable income' means the taxable income reduced by so much of the
taxable income as is derived from income from property;

" 'relevant income amounts', in relation to a person in relation to a year of
income, means-

   (a)  the gross receipts from primary production of the person in relation
        to the year of income; and

   (b)  the reduced taxable income of the person of the year of income;";

   (c)  by inserting after the definition of "request" in sub-section (1) the
        following definitions:



" 'shortest term bond series', in relation to 2 or more qualifying bond
series, means-

   (a)  if the period to maturity in respect of all of the bond series is of
        the same length-each of the bond series; and

   (b)  in any other case-the bond series, or each of the bond series, whose
        period to maturity is not longer than the period to maturity of any of
        the other bond series;

" 'short-term bond rate', in relation to a quarter, means-

   (a)  where there is only 1 qualifying bond series in relation to the
        quarter-the weighted average yield in respect of that bond series;

   (b)  where there are 2 or more qualifying bond series in relation to the
        quarter and only one of those bond series (in this paragraph referred
        to as the 'eligible bond series') is the last declared bond series-the
        weighted average yield in respect of the eligible bond series;

   (c)  where-

        (i)    there are 2 or more qualifying bond series in relation to the
               quarter;

        (ii)   paragraph (b) does not apply; and

        (iii)  only one of the last declared bond series (in this paragraph
               referred to as the 'eligible bond series') is the shortest term
               bond series in relation to the last declared bond series,
the weighted average yield in respect of the eligible bond series;

   (d)  where-

        (i)    there are 2 or more qualifying bond series in relation to the
               quarter; and

        (ii)   neither paragraph (b) nor paragraph (c) applies,
the weighted average yield in respect of any of the qualifying bond series
that is-

        (iii)  a last declared bond series in relation to the qualifying bond
               series;

        (iv)   a shortest term bond series in relation to bond series to which
               sub-paragraph (iii) applies; and

        (v)    a lowest yield bond series in relation to bond series to which
               sub-paragraph (iv) applies; and

   (e)  in any other case-the rate of interest notified by the Treasurer in
        the Gazette as the rate of interest in relation to the quarter for the
        purposes of this definition;";

   (d)  by inserting after the definition of "stock" in sub-section (1) the
        following definitions:



" 'taxable income', in relation to a person in relation to a year of income,
has the same meaning as in the Assessment Act;

" 'weighted average yield', in relation to a bond series, means-

   (a)  where only one competitive tender bid was accepted by the Commonwealth
        for the bond series-the yield of that competitive tender bid; and

   (b)  in any other case-the average of the yields of the competitive tender
        bids accepted by the Commonwealth for the bond series, weighted by the
        respective values of accepted competitive tender bids at each yield
        level;";
(e) by omitting " Income Tax Assessment Act 1936" from the definition of "year
of income" in sub-section (1) and substituting "Assessment Act"; and

   (f)  by adding at the end thereof the following sub-sections:



"(3) Subject to sub-section (4), the relevant income amounts in relation to a
person in relation to a year of income are, and shall be taken at all times to
have been, those amounts as estimated or notified, or last estimated or
notified, as the case requires, in accordance with section 4C.



"(4) Where an income certificate is issued in relation to a person in relation
to a year of income, the relevant income amounts in relation to the person in
relation to the year of income shall, subject to the application of this
sub-section in relation to any later income certificate issued in relation to
the person in relation to the year of income, be taken to be, and at all times
to have been, those amounts as stated in that first-mentioned income
certificate.



"(5) For the purposes of this Act, the part of the taxable income of a person
that is derived from income from property shall be ascertained in accordance
with the Assessment Act.".