Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-45 - RULES FOR PARTICULAR INDUSTRIES AND OCCUPATIONS  

Division 385 - Primary production  

Subdivision 385-E - Primary producer can elect to spread or defer tax on profit from forced disposal or death of live stock  

Operative provisions

SECTION 385-110   Alternative election to defer tax profit and reduce cost of replacement live stock  

385-110(1)    
Alternatively, you can elect:

(a) to include in your assessable income for the ^* disposal year the ^* proceeds of the disposal or death, reduced by the ^* tax profit on the disposal or death; and

(b) to reduce the cost of replacement ^* live stock you buy in the disposal year (or any of the next 5 income years) by amounts totalling not more than the tax profit on the disposal or death; and

(c) to include in your assessable income for the last of the 5 income years following the disposal year any ^* unused tax profit on the disposal or death on the last day of that year.

Note:

If the election is made because of bovine tuberculosis, it has effect over 10 income years instead of 5: see section 385-125.

For rules about the making and effect of an election, see Subdivision 385-H .

385-110(2)    
However, you can only make this election if you will use the ^* proceeds of the disposal or death mainly to buy replacement ^* live stock, or to maintain breeding stock for the purpose of replacing the live stock that were disposed of or died.

385-110(3)    
The unused tax profit on the disposal or death is the ^* tax profit on the disposal or death less the total of:

(a) the amounts included in your assessable income under section 385-115 for replacement animals you breed; and

(b) the amounts by which the amount paid or payable for the purchase of replacement animals is reduced under section 385-120.