Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-45 - RULES FOR PARTICULAR INDUSTRIES AND OCCUPATIONS  

Division 393 - Farm management deposits  

Subdivision 393-A - Tax consequences of farm management deposits  

SECTION 393-5   Deduction for making farm management deposit  

Entitlement to deduction

393-5(1)    
You can deduct the amount of a *farm management deposit for an income year if:

(a) you are the *owner of the deposit; and

(b) the deposit is made at a time during the year when you are an individual carrying on a *primary production business in Australia; and

(c) if during the year, at a time after the deposit was made, you stopped carrying on a primary production business in Australia - you started carrying on such a business again within 120 days (whether or not during the year); and

(d) your *taxable non-primary production income for the year is not more than $100,000; and

(e) you do not die or become bankrupt during the year.

Note 1:

This section does not apply if a deposit is reinvested, the term of a deposit is extended, or a deposit is transferred at the depositor's request: see sections 393-15 and 393-16 .

Note 2:

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) .

Sum of deductions not to exceed taxable primary production income

393-5(2)    
The sum of the deductions that you would otherwise be entitled to under this section for *farm management deposits made in the income year must not exceed your *taxable primary production income for the income year.

Amounts to be deducted in order of deposits

393-5(3)    
If you are entitled to deduct amounts in respect of 2 or more deposits, deduct the amounts in the order in which the deposits were made (until you reach the limit imposed by subsection (2)).