Tax Laws Amendment (2011 Measures No. 5) Act 2011 (62 of 2011)

Schedule 1   Primary producers' income averaging and farm management deposits

Part 1   Primary producers' income averaging

Income Tax Assessment Act 1997

3   After section 392-20

Insert:

392-22 Trustee may choose that a beneficiary is a chosen beneficiary of the trust

(1) The trustee of a trust may choose that a beneficiary of the trust is a chosen beneficiary of the trust for an income year if the trust does not have income of the trust for the income year to which a beneficiary of the trust could be presently entitled.

(2) The maximum number of choices that the trustee may make in respect of the trust for an income year is the higher of:

(a) the number of individuals that were taken to be carrying on a *primary production business carried on by the trust under subsection 392-20(1) in the income year immediately before the current income year; and

(b) 12.

(3) A choice made under subsection (1) must be:

(a) in writing; and

(b) signed by the trustee and the person chosen.

(4) The trustee can make the choice no later than the time it lodges the trust’s *income tax return for the income year to which the choice relates. However, the Commissioner can allow the trustee to make a choice at a later time.

(5) A choice cannot be revoked or varied.

Part 2 - Farm management deposits