Income Tax Assessment (1997 Act) Regulations 2021

SCHEDULES

SCHEDULE 1C  

Note: See section 393-20.02 .

FARM MANAGEMENT DEPOSITS - STATEMENTS TO BE READ BY DEPOSITORS

PART 3 - ADDITIONAL INFORMATION  

3   Additional information for the purposes of paragraph 393-20.02(c)  

3(1)    
For the purposes of paragraph 393-20.02(c) , a form used to apply to an FMD provider to make a farm management deposit must include statements setting out the additional information referred to in subclauses (2) to (8).

3(2)    
The amount that is the minimum deposit threshold (the amount stated in item 4 of the table in section 393-35 of the Act).

3(3)    
The amount that is the maximum deposit limit (the amount stated in item 10 of the table in section 393-35 of the Act).

3(4)    
An individual can own more than one farm management deposit, and can own farm management deposits with different FMD providers, but the sum of the balances of all of the farm management deposits of an owner claimed as a deduction must not be more than the maximum deposit limit.

3(5)    
The amount of any repayment of the deposit must be at least the amount stated in item 12 of the table in section 393-35 of the Act, except where the entire amount of the deposit is repaid.

3(6)    
The deposit will not be deductible if taxable non-primary production income for the year of income exceeds the amount stated in paragraph 393-5(1)(d) of the Act.

3(7)    
If neither the owner ' s tax file number nor Australian Business Number has been quoted to the FMD provider, any repayment will be subject to the withholding rate, which is the sum of:

(a)    the top marginal tax rate for the income year in the year of deposit; and

(b)    the Medicare levy.

Note 1:

The top marginal tax rate is the maximum rate specified in the table in Part I of Schedule 7 to the Income Tax Rates Act 1986 that relates to the income year.

Note 2:

The Medicare levy is specified in subsection 6(1) of the Medicare Levy Act 1986 .

3(8)    
If the deposit is used to offset a liability to pay interest on debts to the FMD provider that do not wholly relate to a primary production business that the owner (or a partnership of which the owner is a partner) carries on, the owner is liable to an administrative penalty of up to 200% of that offset.