Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-45 - RULES FOR PARTICULAR INDUSTRIES AND OCCUPATIONS  

Division 393 - Farm management deposits  

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History

Div 393 inserted by No 79 of 2010 , s 3 and Sch 4 item 2, applicable to assessments for: (a) the 2010-11 income year; and (b) later income years.

Guide to Division 393  

SECTION 393-1   What this Division is about  

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You can deduct a farm management deposit you make, if:

(a) you are an individual carrying on a primary production business (including a primary production business you carry on as a partner in a partnership or as a beneficiary of a trust); and

(b) you hold the deposit for at least 12 months; and

(c) you meet some other tests.

The amount of the deposit withdrawn is included in your assessable income in the income year in which it is repaid. Special rules apply if the deposit is repaid in the event of a severe drought or an applicable natural disaster.

Farm management deposits allow you to carry over income from years of good cash flow and to draw down on that income in years when you need the cash. This enables you to defer the income tax on your taxable primary production income from the income year in which you make the deposit until the income year in which the deposit is repaid.

Note:

An FMD provider must, every calendar month, give certain information to the Agriculture Secretary about farm management deposits: see section 398-5 in Schedule 1 to the Taxation Administration Act 1953 .

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History

S 393-1 amended by No 52 of 2016, s 3 and Sch 3 item 1, by substituting " in the event of a severe drought or " for " in exceptional circumstances or in the event of " , applicable to assessments for the 2016-17 income year and later income years.

S 393-1 amended by No 147 of 2011, s 3 and Sch 5 item 9, by substituting " calendar month " for " quarter " in the note at the end, applicable in relation to information to be given for calendar months in the 2012-13 financial year and each later financial year.

S 393-1 amended by No 147 of 2011, s 3 and Sch 5 item 1, by inserting " or in the event of an applicable natural disaster " in the second para, applicable in relation to repayments made on or after 1 July 2010.

S 393-1 inserted by No 79 of 2010 , s 3 and Sch 4 item 2, applicable to assessments for: (a) the 2010-11 income year; and (b) later income years.

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