INCOME TAX ASSESSMENT ACT 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-45 - RULES FOR PARTICULAR INDUSTRIES AND OCCUPATIONS  

Division 393 - Farm management deposits  

Subdivision 393-C - Special rules relating to financial claims scheme for account-holders with insolvent ADIs  

Operative provisions

SECTION 393-60   393-60   Repayment if owner of farm management deposit with insolvent ADI dies, is bankrupt or ceases to be a primary producer  


Subsection 393-10(4) does not apply in relation to so much of a *farm management deposit with an *ADI as is equal to the sum of the amounts described in subparagraphs (d)(i) and (ii) of this section if:


(a) you are the *owner of the deposit; and


(b) the deposit becomes repayable during an income year because of the requirement contained in the relevant agreement as set out in item 11 of the table in section 393-35 (death, bankruptcy etc.); and


(c) during the income year, the ADI becomes a declared ADI under Division 2AA (Financial claims scheme for account-holders with insolvent ADIs) of Part II of the Banking Act 1959 ; and


(d) at the end of the income year, you have either or both of the following:


(i) an unmet entitlement under that Division connected with the account for the farm management deposit;

(ii) an unmet claim against the ADI, or an unpaid debt owed to you by the ADI, in the winding up of the ADI connected with the account for the deposit.
Note:

Subsection 393-10(4) makes the repayment of a farm management deposit assessable in the income year when the death, bankruptcy etc occurs, rather than in any later year in which it might be repaid.


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