Tax Laws Amendment (2011 Measures No. 5) Act 2011 (62 of 2011)

Schedule 1   Primary producers' income averaging and farm management deposits

Part 1   Primary producers' income averaging

Income Tax Assessment Act 1997

11   After section 393-25

Insert:

393-27 Trustee may choose that a beneficiary is a chosen beneficiary of the trust

(1) The trustee of a trust may choose that a beneficiary of the trust is a chosen beneficiary of the trust for an income year if the trust does not have any income of the trust for the income year to which a beneficiary of the trust could be presently entitled.

(2) The maximum number of choices that the trustee may make in respect of the trust for an income year is the higher of:

(a) the number of individuals to which subsection 393-25(3) applied in the income year immediately before the current income year; and

(b) 12.

(3) A choice made under subsection (1) must be:

(a) in writing; and

(b) signed by the trustee and the person chosen.

(4) The trustee can make the choice no later than the time it lodges the trust’s *income tax return for the income year to which the choice relates. However, the Commissioner can allow the trustee to make a choice at a later time.

(5) A choice cannot be revoked or varied.

393-28 Application of Division to beneficiary no longer under legal disability

If:

(a) a *farm management deposit was made by a trustee on behalf of a beneficiary of a trust; and

(b) the beneficiary was under a legal disability when the deposit was made; and

(c) the beneficiary is no longer under a legal disability;

then this Division, and Division 4A of Part VA of the Income Tax Assessment Act 1936, apply as if the beneficiary had made the deposit.

Note: Division 4A of Part VA of the Income Tax Assessment Act 1936 is about quotation of tax file numbers in connection with farm management deposits.