Income Tax Assessment Act 1997
To avoid doubt, if amounts of interest payable by the *owner of a *farm management deposit, or by a partnership of which the owner is a partner, to the *FMD provider in respect of loans or other debts of the owner or partnership fall short of what they otherwise would be because the owner holds the farm management deposit, then:
(a) any income of the owner or partnership comprising the shortfall is neither assessable income nor *exempt income of the owner or partnership; and
(b) any amount that any person:
(i) is not liable to pay because of the shortfall; and
is not deductible. 393-17(2)
(ii) could have, apart from this section, deducted under this Act;
However, this section applies only to the extent that the loans or other debts relate to a *primary production business that the *owner or partnership carries on.