Tax and Superannuation Laws Amendment (2016 Measures No. 1) Act 2016 (52 of 2016)

Schedule 3   Farm management deposits

Part 1   Main amendments

Income Tax Assessment Act 1997

12   After subsection 393-40(2)

Insert:

Repayment in the event of severe drought

(3) Subsections (1) and (2) do not apply to a repayment of the whole or a part of a *farm management deposit if:

(a) the *owner of the deposit carries on a *primary production business that satisfies one or more of paragraphs (a), (b), (c) and (f) of the definition of primary production business in subsection 995-1(1); and

(b) any of the land on which the owner of the deposit carries on any primary production business that satisfies one or more of those paragraphs has, for the period specified in subsection (3AA), had rainfall that:

(i) is deficient to an extent prescribed by the regulations; or

(ii) if there are no such regulations - is within the lowest 5% of rainfall for that land according to records held by the Commonwealth Bureau of Meteorology; and

(c) for the period specified in subsection (3AA):

(i) the owner of the deposit has carried on, on that land, a primary production business that satisfies one or more of those paragraphs; and

(ii) the amount of the repayment has been held in that farm management deposit.

(3AA) For the purposes of paragraphs (3)(b) and (c), the period is:

(a) a period prescribed by the regulations; or

(b) if there are no such regulations - the most recent period of 6 consecutive months:

(i) that precede the repayment; and

(ii) for which rainfall records held by the Commonwealth Bureau of Meteorology are publicly available at the time of the repayment.