Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-45 - RULES FOR PARTICULAR INDUSTRIES AND OCCUPATIONS  

Division 393 - Farm management deposits  

Subdivision 393-B - Meaning of farm management deposit and owner  

SECTION 393-20   Farm management deposits  

Meaning of farm management deposit

393-20(1)    
A deposit with an *FMD provider is a farm management deposit if:

(a) the depositor applies to make the deposit in accordance with subsection (2); and

(b) the deposit is made under an agreement between the FMD provider and the depositor that:

(i) describes the deposit as a farm management deposit; and

(ii) at all times while the deposit is with the FMD provider, contains requirements to the effect set out in the table in section 393-35 .

The agreement may also contain additional requirements that are not inconsistent with those set out in that table.

Depositor to provide information in application form

393-20(2)    
For the purposes of paragraph (1)(a), the depositor must apply to the *FMD provider to make the deposit by completing and signing a form that:

(a) permits the depositor to state the *owner ' s *tax file number in the form; and

(b) requires the depositor to provide any other information required by regulations for the purposes of this paragraph; and

(c) contains any statements, required by regulations for the purposes of this paragraph, that are to be read by the depositor when completing the form.

Note 1:

A depositor who makes a false or misleading statement in such a form commits an offence against section 8K or 8N of the Taxation Administration Act 1953 .

Note 2:

If the owner does not quote his or her tax file number or ABN to the FMD provider, the Pay as you go (PAYG) withholding required under section 12-140 in Schedule 1 to the Taxation Administration Act 1953 from a repayment of the deposit is at the highest marginal tax rate.

Note 3:

Division 4A of Part VA of the Income Tax Assessment Act 1936 sets out rules for quoting tax file numbers in connection with farm management deposits.

Meaning of FMD provider

393-20(3)    
In this Act:

FMD provider
means an entity that:

(a) is an *ADI; or

(b) carries on in Australia the *business of banking, so long as the Commonwealth, a State or a Territory guarantees the repayment of any deposit taken in the course of that business; or

(c) carries on in Australia a business that consists of or includes taking money on deposit, so long as the Commonwealth, a State or a Territory guarantees the repayment of any deposit taken in the course of that business.