INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART XII - DROUGHT INVESTMENT ALLOWANCE  

Division 2 - Primary producer deduction  

Subdivision B - Loss of entitlement to deduction  

SECTION 634   DISPOSAL ETC. OF ITEM AFTER 12 MONTHS  

634(1)   [No deduction entitlement]  

Subject to subsection (3), the taxpayer is not entitled to the deduction if, 12 months or more after the item of drought mitigation property is first used, or installed ready for use, by the taxpayer, the taxpayer:

(a) disposes of the item; or

(b) leases the item, lets it on hire under a hire-purchaseagreement or otherwise grants a right to another person to use it; or

(c) uses the item outside Australia or for a purpose other than that of producing assessable primary production income;

and the taxpayer intended to do so at the time of acquiring or constructing the item.

634(2)   Loss if disposal of partial interest.  

Subject to subsection (3), if:

(a) 12 months or more after the item is first used, or installed ready for use, by the taxpayer, the taxpayer disposes of a part of his or her interest in it; and

(b) when the taxpayer acquired or constructed the item, the taxpayer intended to dispose of the whole or a part of his or her interest in it after becoming entitled to the deduction;

the taxpayer is not entitled to the deduction.

634(3)   Commissioner may determine that entitlement not wholly lost.  

If the Commissioner determines that the taxpayer should not lose the entitlement to the whole or part of the deduction under subsection (1) or (2), that subsection does not apply to the entitlement to the whole or the part.