You can elect to spread profit from the forced disposal or death of livestock in over a period of 5 years (or 10 years if the forced disposal was in relation to the control of bovine tuberculosis). Alternatively, you can elect to defer the profit and to use it to reduce the cost of replacement livestock in the disposal year or any of the next 5 income years, any unused part of the profit being included in assessable income in the fifth income year.
An election to spread or defer profits can be made where:
- land is compulsorily acquired or resumed under an Act
- a State or Territory leases land for a cattle tick eradication campaign
- pasture or fodder is destroyed by fire, drought or flood and the proceeds of the disposal or death will be mainly used to buy replacement stock or to maintain breeding stock for the purpose of replacing the livestock
- livestock are compulsorily destroyed under an Australian law for the control of a disease (including bovine tuberculosis).or they died of such a disease, or
- official notification is received under an Australian law dealing with contamination of property.