Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-45 - RULES FOR PARTICULAR INDUSTRIES AND OCCUPATIONS  

Division 392 - Long-term averaging of primary producers ' tax liability  

Subdivision 392-C - How big is your averaging adjustment?  

How to work out your averaging component

SECTION 392-80   Work out your taxable primary production income  

392-80(1)    
Work out your taxable primary production income for the ^* current year in this way: Method statement

Assessable primary production income

392-80(2)    
Your assessable primary production income for the *current year is the sum of:

(a)    any amount of your *basic assessable income for the current year that was *derived from, or resulted from, your carrying on a *primary production business; and

(b)    any amount included in your assessable income under section 420-25 for the current year because you cease to *hold a *primary producer registered emissions unit; and

(c)    any amount of your basic assessable income for the current year to the extent that:

(i) you are a beneficiary of a trust that is carrying on a primary production business; and

(ii) the amount is your share of the trust ' s *net income that is attributable to, or resulted from, an amount being included in the trust ' s assessable income under section 420-25 because the trust ceases to hold an *Australian carbon credit unit; and

(iii) the unit would have been a primary producer registered emissions unit if you had started to hold, held and ceased to hold the unit instead of the trust; and

(d)    any amount of your basic assessable income for the current year to the extent that:

(i) you are a partner in a partnership that is carrying on a primary production business; and

(ii) the amount is your share of the partnership ' s net income that is attributable to, or resulted from, an amount being included in the partnership ' s assessable income under section 420-25 because a partner (the holding partner ) in the partnership ceases to hold a primary producer registered emissions unit; and

(iii) the unit would still have been a primary producer registered emissions unit if each other partner in the partnership had started to hold, held and ceased to hold the unit instead of the holding partner; and

(e)    any amount of your basic assessable income for the current year that was derived from, or resulted from, an *arrangement with a *carbon service provider to the extent that:

(i) the arrangement relates to the provider starting to hold, holding or ceasing to hold an Australian carbon credit unit; and

(ii) the unit would have been a primary producer registered emissions unit if you were starting to hold, holding or ceasing to hold the unit (as applicable) instead of the provider; and

(iii) the amount does not relate to you giving the provider a *quasi-ownership right over land.

Primary production deductions

392-80(3)    

Your primary production deductions for the *current year are:

(a)    all amounts you can deduct that relate exclusively to the amount referred to in paragraph (2)(a) ; and

(b)    so much of any other amounts you can deduct (other than *apportionable deductions) to the extent that they reasonably relate to the amount referred to in paragraph (2)(a) ; and

(c)    so much of any other amounts you can deduct for the current year in relation to expenditure you incur in:

(i) starting to *hold a *primary producer registered emissions unit; or

(ii) holding such a unit; or

(iii) ceasing to hold such a unit; and

(d)    so much of any other amounts you can deduct for the current year in relation to expenditure you incur under an *arrangement with a *carbon service provider to the extent that:

(i) the arrangement relates to the provider starting to hold, holding or ceasing to hold an *Australian carbon credit unit; and

(ii) the unit would have been a primary producer registered emissions unit if you were starting to hold, holding or ceasing to hold the unit (as applicable) instead of the provider; and

(iii) the expenditure does not relate to you giving the provider a *quasi-ownership right over land.

Note 1:

For the expenditure covered by subparagraph (c)(i) , see subsections 420-15(1) and (4) and 420-65(4) .

Note 2:

For the expenditure covered by subparagraph (c)(iii) , see subsection 420-42(1) .