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-A
-
Is your income tax affected by averaging?
SECTION 392-20
Trust beneficiaries taken to be carrying on primary production business
392-20(1)
You are taken to carry on a * primary production business carried on by a trust during an income year if you satisfy the requirements in subsection (2), (3) or (4).
Primary production business carried on by a trust with beneficiary presently entitled to income of the trust
392-20(2)
You satisfy the requirements in this subsection if:
(a) you are a beneficiary of the trust referred to in subsection (1); and
(b) you are presently entitled to a share of the income of the trust for the income year; and
(c) if you are presently entitled to less than $1,040 of the income of the trust for the income year - the Commissioner is satisfied that your interest in the trust was not acquired or granted wholly or primarily to enable your income tax to be adjusted under this Division.
Primary production business carried on by a fixed trust with no income of the trust
392-20(3)
You satisfy the requirements in this subsection if:
(a) you are a beneficiary of the trust referred to in subsection (1); and
(b) at all times during the income year, the manner or extent to which each beneficiary of the trust can benefit from the trust is not capable of being significantly affected by the exercise, or non-exercise, of a power; and
(c) 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; and
(d) if the trust had income of the trust for the income year, you would have been presently entitled to a share of the income of the trust.
Primary production business carried on by a non-fixed trust with no income of the trust
392-20(4)
You satisfy the requirements in this subsection if you do not satisfy the requirements in subsection (3) and you are a chosen beneficiary of the trust referred to in subsection (1) for the purposes of section 392-22 for the income year.
Public trading trusts
392-20(5)
You are not taken to carry on a *primary production business carried on by the trustee of a public trading trust (as defined in section 102R of the Income Tax Assessment Act 1936 , which deals with public trading trusts).
View history note
Hide history noteYou are taken to carry on a * primary production business carried on by a trust during an income year if you satisfy the requirements in subsection (2), (3) or (4).
Primary production business carried on by a trust with beneficiary presently entitled to income of the trust
392-20(2)
You satisfy the requirements in this subsection if:
(a) you are a beneficiary of the trust referred to in subsection (1); and
(b) you are presently entitled to a share of the income of the trust for the income year; and
(c) if you are presently entitled to less than $1,040 of the income of the trust for the income year - the Commissioner is satisfied that your interest in the trust was not acquired or granted wholly or primarily to enable your income tax to be adjusted under this Division.
Primary production business carried on by a fixed trust with no income of the trust
392-20(3)
You satisfy the requirements in this subsection if:
(a) you are a beneficiary of the trust referred to in subsection (1); and
(b) at all times during the income year, the manner or extent to which each beneficiary of the trust can benefit from the trust is not capable of being significantly affected by the exercise, or non-exercise, of a power; and
(c) 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; and
(d) if the trust had income of the trust for the income year, you would have been presently entitled to a share of the income of the trust.
Primary production business carried on by a non-fixed trust with no income of the trust
392-20(4)
You satisfy the requirements in this subsection if you do not satisfy the requirements in subsection (3) and you are a chosen beneficiary of the trust referred to in subsection (1) for the purposes of section 392-22 for the income year.
Public trading trusts
392-20(5)
You are not taken to carry on a *primary production business carried on by the trustee of a public trading trust (as defined in section 102R of the Income Tax Assessment Act 1936 , which deals with public trading trusts).
This information is provided by CCH Australia Limited Link opens in new window. View the disclaimer and notice of copyright.