Income Tax Assessment Act 1997
View history note
Hide history noteSECTION 392-65 What your averaging adjustment reflects 392-65(1)
Your averaging adjustment is a proportion of your gross averaging amount, taking account of:
(a) your taxable primary production income (the part of your basic taxable income from your primary production business); and
(b) your taxable non-primary production income (the part of your basic taxable income from other sources).
Your averaging component is the means of taking into account the different parts of your basic taxable income in working out your averaging adjustment.
392-65(2)
If your taxable non-primary production income is less than or equal to $5,000, your averaging component equals the whole of your basic taxable income. (In other words, your averaging component includes all of your taxable primary production income and all of your taxable non-primary production income.)
392-65(3)
If your taxable non-primary production income is between $5,000 and $10,000, a shading-out system applies so that your averaging component includes some of your taxable non-primary production income as well as all of your taxable primary production income.
392-65(4)
If your taxable non-primary production income is $10,000 or more, your averaging component equals your taxable primary production income. Your averaging component does not include any of your taxable non-primary production income.
392-65(5)
The following diagram shows examples of these relationships.
The second and third columns show that as taxable non-primary production income increases above $5,000 (up to a maximum of $10,000), less of it is counted in the averaging component.
Disclaimer and notice of copyright applicable to materials provided by CCH Australia Limited
CCH Australia Limited ("CCH") believes that all information which it has provided in this site is accurate and reliable, but gives no warranty of accuracy or reliability of such information to the reader or any third party. The information provided by CCH is not legal or professional advice. To the extent permitted by law, no responsibility for damages or loss arising in any way out of or in connection with or incidental to any errors or omissions in any information provided is accepted by CCH or by persons involved in the preparation and provision of the information, whether arising from negligence or otherwise, from the use of or results obtained from information supplied by CCH.
The information provided by CCH includes history notes and other value-added features which are subject to CCH copyright. No CCH material may be copied, reproduced, republished, uploaded, posted, transmitted, or distributed in any way, except that you may download one copy for your personal use only, provided you keep intact all copyright and other proprietary notices. In particular, the reproduction of any part of the information for sale or incorporation in any product intended for sale is prohibited without CCH's prior consent.
