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-A - Is your income tax affected by averaging?  

SECTION 392-10   Individuals who carry on a primary production business  

392-10(1)    
This Division applies to your assessment for the ^* current year if:

(a) you are an individual; and

(b) you have carried on a ^* primary production business in Australia for 2 or more income years in a row (the last of which is the current year); and

(c) for at least one of those income years your ^* basic taxable income is less than or equal to your basic taxable income for the next of those income years.

Note 1:

It follows that this Division does not apply if your basic taxable income has decreased every income year since you started carrying on a primary production business.

Note 2:

In working out whether this Division applies to your assessment for an income year, you may need to take account of income years before the 1998-99 income year: see section 392-1 of the Income Tax (Transitional Provisions) Act 1997 .

Continued application of this Division after you stop carrying on a primary production business

392-10(2)    
This Division also applies to your assessment for the ^* current year if:

(a) this Division applied to your assessment for an earlier income year during which you carried on a ^* primary production business in Australia; and

(b) you do not carry on that business during the current year; and

(c) at least one of the following conditions is met for each income year (including the current year) after the income year in which you stopped carrying on that business:

(i) your assessable income for the income year included assessable income that was ^* derived from, or resulted from, your having carried on that business;

(ii) you carried on a ^* primary production business in Australia during the income year.

Note:

In working out whether this Division applies to your assessment for an income year, you may need to take account of income years before the 1998-99 income year. See section 392-1 of the Income Tax (Transitional Provisions) Act 1997.

392-10(3)    

This section applies as if you did not carry on a *primary production business during a particular income year if, because you made a choice under section 392-25 , this Division did not apply to your assessment for that income year.

Note:

A choice that you make under section 392-25 has the effect that this Division does not apply to your assessments for 10 income years. None of these income years can be taken into account in applying this section after the 10 year opt-out period.