Tax and Superannuation Laws Amendment (2016 Measures No. 1) Act 2016 (52 of 2016)

Schedule 3   Farm management deposits

Part 1   Main amendments

Income Tax Assessment Act 1997

9   After section 393-35

Insert:

393-37 Agreements for a farm management deposit may allow for some offsets of a depositor's liabilities

An agreement mentioned in paragraph 393-20(1)(b) does not contravene the requirements of item 8 of the table in section 393-35 to the extent that:

(a) it provides for amounts of interest to be payable to the *FMD provider in respect of a loan or other debt of the *owner of the *farm management deposit, or of a partnership of which the owner is a partner, to be reduced; and

(b) that loan or other debt relates to a *primary production business that the owner or partnership carries on.