Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-45 - RULES FOR PARTICULAR INDUSTRIES AND OCCUPATIONS  

Division 385 - Primary production  

Subdivision 385-E - Primary producer can elect to spread or defer tax on profit from forced disposal or death of live stock  

Operative provisions

SECTION 385-100   Cases where you can make an election  

385-100(1)    
You can make an election if:

(a) you dispose of ^* live stock, or they die, because:

(i) land is compulsorily acquired or resumed under an Act; or

(ii) a State or Territory leases land for a cattle tick eradication campaign; or

(iii) pasture or fodder is destroyed by fire, drought or flood and you will use the ^* proceeds of the disposal or death mainly to buy replacement stock or to maintain breeding stock for the purpose of replacing the live stock; or

(iv) they are compulsorily destroyed under an ^* Australian law for the control of a ^* disease or they die of such a ^* disease; or

(v) you receive an official notification under an ^* Australian law dealing with contamination of property; and

(b) you held the live stock as assets of a ^* primary production business you carry on in Australia; and

(c) apart from this Subdivision, your assessable income for any income year would include the ^* proceeds of the disposal or death.

385-100(2)    
The proceeds of the disposal or death are:

(a) if you dispose of the ^* live stock or their carcases in the ordinary course of ^* business - the total of:

(i) any amount you receive as payment for the live stock or carcases; and

(ii) any compensation you receive for the death or destruction, or a reduction in ^* market value, of the live stock or their carcases from an ^* Australian government agency; or

(b) if you dispose of the ^* live stock or their carcases outside the ordinary course of ^* business - the total of:

(i) the market value of the live stock or their carcases, at the time of disposal; and

(ii) any compensation you receive for the death or destruction, or a reduction in market value, of the live stock or their carcases from an ^* Australian government agency; or

(c) if the ^* live stock die, and you do not dispose of their carcases to someone else - any compensation you receive for their death or destruction from an ^* Australian government agency.