# 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

How to work out your averaging component

SECTION 392-90   Work out your averaging component

392-90(1)
Work out your averaging component for the * current year using the following table, taking into account:

(a) your * taxable primary production income for the current year; and

(b) your * taxable non-primary production income for the current year.

 Averaging component The averaging component equals: Item If *taxable non-primary production income: for *taxable primary production income > 0 for *taxable primary production income = 0 1 is nil *Basic taxable income Nil . 2 is more than nil but does not exceed \$5,000 *Basic taxable income *Basic taxable income . 3 exceeds \$5,000 but does not exceed \$10,000 *Taxable primary production income plus *non-primary production shade-out amount *Non-primary production shade-out amount . 4 is \$10,000 or more *Taxable primary production income Nil

##### Note:

Subsections (2) and (3) explain how to work out your non-primary production shade-out amount if your taxable non-primary production income is between \$5,000 and \$10,000.

Non-primary production shade-out amount if your taxable primary production income is more than nil

392-90(2)
If your * taxable primary production income is more than nil, your non-primary production shade-out amount is the amount worked out using the formula:

 \$10,000 - Taxable non-PP income

Non-primary production shade-out amount if your taxable primary production income is nil

392-90(3)
If your * taxable primary production income is nil, your non-primary production shade-out amount is the amount worked out using the formula:

However, if that amount is less than nil, your non-primary production shade-out amount is nil.

392-90(4)
In this section:

Assessable PP income
means your * assessable primary production income for the * current year.

PP deductions
means your * primary production deductions for the * current year.

Taxable non-PP income
your * taxable non-primary production income for the * current year.

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