Income Tax Assessment Act 1997
View history note
Hide history noteAn agreement mentioned in paragraph 393-20(1)(b) must contain requirements to the effect of those set out in the following table:
| Requirements of agreement for a farm management deposit | |
| Item | Requirement |
| 1 | The
*
owner must be an individual who is carrying on a
*
primary production business in Australia when the deposit is made.
Note: This Division applies to certain partners and beneficiaries as if they were individuals who carried on a primary production business: see subsections 393-25(2), (3), (4), (5) and (6). |
| 2 | The deposit:
(a) must not be made by 2 or more individuals jointly; and (b) must not be made on behalf of 2 or more individuals. |
| 3 | The deposit must not be made by a trustee on behalf of a beneficiary unless the beneficiary is:
(a) under a legal disability; and (b) presently entitled to a share of the income of the trust. |
| 4 | The deposit must be
$
1,000 or more when it is made, unless the deposit is:
(a) the immediate reinvestment of a * farm management deposit as a farm management deposit with the same * FMD provider; or (b) the extension of the term of a farm management deposit (even if other terms such as those relating to interest payable are also varied). |
| 5 | (Repealed by No 147 of 2011) |
| 6 | Rights of the depositor in respect of the deposit must not be transferable to another entity. |
| 7 | The deposit must not be the subject of a charge or other encumbrance to secure any amount. |
| 8 | The fact that the *owner is the owner of the deposit must not be the reason why, or one of the reasons why, amounts of interest that are or will be payable to the *FMD provider in respect of loans or other debts of the owner, or of a partnership of which the owner is a partner, are or will be less than they would otherwise be. |
| 9 | Interest or other earnings on the deposit must not be invested as a * farm management deposit with the * FMD provider without having first been paid to the depositor. |
| 10 | The deposit must not be more than $800,000, and the sum of the balances from time to time of the deposit and all other * farm management deposits of the * owner with *FMD providers must not be more than $800,000. |
| 11 | The deposit must be repaid if:
(a) the * owner dies or becomes bankrupt; or (b) the owner ceases to carry on a * primary production business in Australia and does not start carrying on such a business again within 120 days. |
| 12 | The amount of any repayment of the deposit must be $ 1,000 or more, except if the entire amount of the deposit is repaid. |
| 13 | The
*
FMD provider must transfer the deposit by electronic means to another FMD provider that agrees to accept the deposit as a
*
farm management deposit, if the first FMD provider is:
(a) requested in writing by the depositor to do so; and (b) given any information or other assistance from the depositor necessary for the purpose. |
| 14 | The * FMD provider must not deduct from the deposit (whether at the time it is made, while it is with the FMD provider or at the time of its repayment) any administration fee or other amount required by the FMD provider to be paid in respect of the deposit or otherwise. |
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