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 392-90   Work out your averaging component  

392-90(1)    
Work out your averaging component for the ^* current year using the following table, taking into account:

(a) your ^* taxable primary production income for the current year; and

(b) your ^* taxable non-primary production income for the current year.

Averaging component
		The averaging component equals:
Item	If *taxable non-primary production income:	for *taxable primary production income > 0	for *taxable primary production income = 0
1	is nil	*Basic taxable income	Nil
.
2	is more than nil but does not exceed $5,000	*Basic taxable income	*Basic taxable income
.
3	exceeds $5,000 but does not exceed $10,000	*Taxable primary production income plus *non-primary production shade-out amount	*Non-primary production shade-out amount
.
4	is $10,000 or more	*Taxable primary production income	Nil

Note:

Subsections (2) and (3) explain how to work out your non-primary production shade-out amount if your taxable non-primary production income is between $5,000 and $10,000.

Non-primary production shade-out amount if your taxable primary production income is more than nil

392-90(2)    
If your ^* taxable primary production income is more than nil, your non-primary production shade-out amount is the amount worked out using the formula:

$10,000

−

Taxable non-PP income

Non-primary production shade-out amount if your taxable primary production income is nil

392-90(3)    
If your ^* taxable primary production income is nil, your non-primary production shade-out amount is the amount worked out using the formula:

However, if that amount is less than nil, your non-primary production shade-out amount is nil.

392-90(4)    
In this section:

Assessable PP income
means your ^* assessable primary production income for the ^* current year.

PP deductions
means your ^* primary production deductions for the ^* current year.

Taxable non-PP income
your ^* taxable non-primary production income for the ^* current year.