GST issues registers

Primary production industry partnership

5 Livestock

5.1 Disposal

5.1.1 For PAYG purposes how, is the income from the forced disposal of livestock treated?

Question

For PAYG purposes how is the income from the forced disposal of livestock treated?

Answer

Income from the forced disposal of livestock can be returned over 5 years (under section 385-15 of the Income Tax Assessment Act 1997). Where this is the case only one fifth of the total profit from the sale is included in instalment income for the income year in which the disposal takes place. The remaining four fifths is statutory income and is not included in the instalment income. The tax on this statutory income will be collected on assessment over the remaining four years.

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