Commonwealth Numbered Acts

LOAN (INCOME EQUALIZATION DEPOSITS) AMENDMENT ACT 1984 No. 173, 1984 - SECT 4

4. After section 4 of the Principal Act the following sections are inserted:
Interest payable in respect of deposits

"4A. (1) Interest is payable in respect of deposits in accordance with this
section in respect of any period after the commencement of this section.

"(2) Subject to this section, the rate of interest payable from time to time
in respect of primary producer deposits made in a year of income by, or by a
trustee on behalf of, a person is-

   (a)  in respect of any of the deposits that are conversion deposits-the
        Class A interest rate;

   (b)  in respect of so much of the amount of the deposits (other than
        conversion deposits) as does not exceed the Class A interest deposit
        limit in relation to the person in relation to the year of income-the
        Class A interest rate; and

   (c)  in respect of the amount (if any) by which the amount of any
        non-conversion deposits included in the deposits exceeds the Class A
        interest deposit limit in relation to the person in relation to the
        year of income-the Class B interest rate.



"(3) The rate of interest payable in respect of Class C deposits in respect of
a period ending on or before 31 August 1987 is the Class C interest rate.

"(4) No interest is payable in respect of Class C deposits in respect of any
period after 31 August 1987.

"(5) Subject to this section, the rate of interest payable in respect of Class
B deposits is the Class B interest rate.

"(6) Where-

   (a)  during a year of income, the person who is the owner of a primary
        producer deposit ceases to be an eligible primary producer; and

   (b)  the person does not again become an eligible primary producer before
        the expiration of the period of 120 days after the day on which the
        person ceases to be an eligible primary producer, the deposit shall be
        deemed not to be, and never to have been, a primary producer deposit
        at any time after the date on which the person ceased to be a primary
        producer.

"(7) Where-

   (a)  but for this sub-section, interest would accrue at a particular time
        at the Class A interest rate in respect of deposits made by, or by a
        trustee on behalf of, a person in a year of income or years of income;
        and

   (b)  the amount of those deposits exceeds $250,000, interest is payable at
        the Class B interest rate in respect of so much of the amount of those
        deposits as is equal to the amount of the excess.

"(8) If the short-term bond rate in respect of a quarter is less than or equal
to 3% per annum, no interest is payable in respect of that quarter in respect
of deposits in respect of which interest would, but for this sub-section, be
payable at the Class B interest rate. Class A interest deposit limit

"4B. (1) For the purposes of this Act, the Class A interest deposit limit in
relation to a person in relation to a year of income is an amount equal to-

   (a)  60% of the gross receipts from primary production of the person in
        relation to the year of income; or

   (b)  the reduced taxable income of the person of the year of income,
        whichever is the less.

"(2) Where-

   (a)  during the first 2 months of a year of income, a person-

        (i)    makes an application in respect of the making of a deposit
               otherwise than on behalf of a beneficiary of a trust estate; or

        (ii)   being the trustee of a trust estate, makes an application in
               respect of the making of a deposit on behalf of a beneficiary
               of the trust estate who is under a legal disability; and

   (b)  each previous application (if any) made in the year of income in
        respect of the making of a deposit by, or on behalf of, the person or
        the beneficiary, as the case may be, included an election under this
        sub-section, the person may, in the application, elect that the rate
        of interest applicable to the deposit be determined by reference to
        the Class A interest deposit limit in relation to the person or the
        beneficiary, as the case may be, in relation to the next preceding
        year of income.

"(3) Where an election is made under sub-section (2) in an application made
during a year of income in respect of the making of a deposit, the deposit
shall, for the purposes of the application of sub-section 4A (2), be deemed to
have been made in the next preceding year of income.

"(4) Nothing in sub-section (3) entitles a person to be paid interest in
respect of a deposit in respect of a period before the deposit was actually
made. Estimates of relevant income amounts

"4C. (1) Where-

   (a)  during a year of income (in this sub-section referred to as the
        'relevant year of income') a person makes an application in respect of
        the making of a deposit by the person or by the person as trustee on
        behalf of a beneficiary of a trust estate; and

   (b)  the person or the beneficiary, as the case may be, has not received a
        notice given by the authorized person under sub-section 4D (3) of a
        determination of the Commissioner in relation to the person or the
        beneficiary, as the case may be, in relation to-

        (i)    where sub-paragraph (ii) does not apply-the relevant year of
               income; or

        (ii)   where the person makes an election under sub-section 4B (2) in
               the application-the year of income next preceding the relevant
               year of income, the person shall, in the application, state the
               amounts that the person estimates will be the relevant income
               amounts in relation to the person or the beneficiary, as the
               case may be, in relation to the relevant year of income or, in
               a case to which sub-paragraph (b) (ii) applies, in relation to
               the year of income next preceding the relevant year of income.

"(2) The depositor in relation to a deposit may, at any time, on a form made
available by the authorized person, give notice to the authorized person of
the amounts that the depositor estimates are, or will be, the relevant income
amounts, in relation to a year of income, in relation to-

   (a)  in a case to which paragraph (b) does not apply-the depositor; or

   (b)  where the deposit was made by the depositor in the capacity of a
        trustee of a trust estate on behalf of a beneficiary-the beneficiary.

"(3) Nothing in this section affects the operation of section 10.
Determination of relevant income amounts

"4D. (1) The Commissioner shall, on request by the authorized person,
determine the relevant income amounts in relation to the owner of a deposit in
relation to a year of income.

"(2) The Commissioner shall issue to the authorized person a notice of any
determination or decision of the Commissioner under this section.

"(3) Where the authorized person receives notice of a determination or
decision under sub-section (2), the authorized person shall serve notice in
writing of the determination or decision on the person to whom the
determination or decision relates.

"(4) Subject to sub-section (5), where the person to whom a determination
relates is dissatisfied with the determination, the person may, within 60 days
after service of notice of the determination under sub-section (3), post to or
lodge with the authorized person an objection in writing against the
determination stating fully and in detail the grounds on which he relies.

"(5) The authorized person shall forward the objection to the Commissioner.

"(6) Where the determination is an amended determination, the person has no
further right of objection than he would have had if the amendment had not
been made, except to the extent that the amendment resulted in a reduction of
either of the relevant income amounts in relation to the person in relation to
a year of income.

"(7) The Commissioner shall consider the objection, and may either disallow
it, or allow it either wholly or in part, and shall, if his decision requires
an amendment of the determination to which the decision relates, amend the
determination.

"(8) In addition to his power to amend a determination in accordance with
sub-section (7), the Commissioner may amend-

   (a)  a determination that has not previously been amended; or

   (b)  a determination that was last amended in accordance with sub-section
        (7), once within 2 years after the date on which notice of the
        determination or amended determination, as the case may be, is served
        on the person to whom the determination or amended determination, as
        the case may be, relates.

"(9) The Commissioner shall not amend a determination except as provided by
sub-sections (7) and (8).

"(10) The production of a notice of a determination under this section, or of
a document under the hand of the Commissioner purporting to be a copy of such
a notice, shall be conclusive evidence of the due making of the determination
and that the amounts and all the particulars of the determination are correct.

"(11) A document purporting to be a notice or document referred to in
sub-section (10) shall, unless the contrary is established, be deemed to be
such a notice or document and to have been duly given.

"(12) In this section, unless the contrary intention appears, 'determination'
includes an amended determination.".