Tax Laws Amendment (2011 Measures No. 5) Act 2011 (62 of 2011)

Schedule 1   Primary producers' income averaging and farm management deposits

Part 1   Primary producers' income averaging

Income Tax Assessment Act 1997

10   Subsection 393-25(4)

Repeal the subsection, substitute:

Primary production business carried on by a trust with beneficiary presently entitled to income of the trust

(4) You satisfy the requirements in this subsection if:

(a) you are an individual and a beneficiary of the trust referred to in subsection (3); and

(b) you are presently entitled to a share of the income of the trust for the income year.

Primary production business carried on by a fixed trust with no income of the trust

(5) You satisfy the requirements in this subsection if:

(a) you are an individual and a beneficiary of the trust referred to in subsection (3); and

(b) at all times during the income year, the manner or extent to which each beneficiary of the trust can benefit from the trust is not capable of being significantly affected by the exercise, or non-exercise, of a power; and

(c) the trust does not have any income of the trust for the income year to which a beneficiary of the trust could be presently entitled; and

(d) if the trust had income of the trust for the income year, you would have been presently entitled to a share of the income of the trust.

Primary production business carried on by a non-fixed trust with no income of the trust

(6) You satisfy the requirements in this subsection if you do not satisfy the requirements in subsection (5) and you are an individual and a chosen beneficiary of the trust referred to in subsection (3) for the purposes of section 393-27 for the income year.