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:

Graphic

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.


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