INCOME TAX ASSESSMENT ACT 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-45 - RULES FOR PARTICULAR INDUSTRIES AND OCCUPATIONS  

Division 392 - Long-term averaging of primary producers' tax liability  

Subdivision 392-C - How big is your averaging adjustment?  

How to work out your averaging component

SECTION 392-80   Work out your taxable primary production income  

392-80(1)  
Work out your taxable primary production income for the * current year in this way: Method statement


Step 1.

Compare your * assessable primary production income for the * current year with your * primary production deductions for the current year.


Step 2.

If your assessable primary production income is larger than your primary production deductions, your taxable primary production income is the difference between them.


Step 3.

If your primary production deductions are larger than (or equal to) your assessable primary production income, your taxable primary production income is nil.

Assessable primary production income

392-80(2)  
Your assessable primary production income for the * current year is the amount of your * basic assessable income for the current year that was * derived from, or resulted from, your carrying on a * primary production business. Primary production deductions

392-80(3)  


Your primary production deductions for the *current year are:


(a) all amounts you can deduct that relate exclusively to your *assessable primary production income for the current year; and


(b) so much of any other amounts you can deduct (other than *apportionable deductions) to the extent that they reasonably relate to your assessable primary production income for the current year.


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