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.


 

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