Income Tax Assessment Act 1997
The provisions mentioned in subsection (2) do not apply in relation to the following transactions:
(a) the immediate reinvestment of a *farm management deposit as a farm management deposit with the same *FMD provider;
(b) the extension of the term of a farm management deposit (even if other terms such as those relating to interest payable are also varied);
(c) the transfer of a farm management deposit in accordance with a requirement of the relevant agreement as set out in item 13 of the table in section 393-35 (which allows for transfers of deposits at the request of the depositor).
This means that these transactions:
The provisions are:
(a) section 393-5 (about deductions for making a farm management deposit); and
(b) subsection 393-10(1) (about assessability of the repayment of a farm management deposit); and
(c) subsections 393-40(1) and (2) (about repayment of a farm management deposit within the first 12 months); and
(ca) subsection 393-40(3) (about repayment of a farm management deposit in the event of severe drought); and
(d) subsections 393-40(3A) and (4) (about repayment of a farm management deposit in the event of an applicable natural disaster).
For the purposes of working out the *unrecouped FMD deduction for a deposit that is subject to a transaction mentioned in subsection (1), the transaction does not cause the deposit to be a different deposit.
This ensures that the unrecouped FMD deduction (which affects how much income tax is assessed in the event of a repayment) equals the deduction for the original deposit, less any amount included in your assessable income because of a previous repayment of the deposit.
Disclaimer and notice of copyright applicable to materials provided by CCH Australia Limited
CCH Australia Limited ("CCH") believes that all information which it has provided in this site is accurate and reliable, but gives no warranty of accuracy or reliability of such information to the reader or any third party. The information provided by CCH is not legal or professional advice. To the extent permitted by law, no responsibility for damages or loss arising in any way out of or in connection with or incidental to any errors or omissions in any information provided is accepted by CCH or by persons involved in the preparation and provision of the information, whether arising from negligence or otherwise, from the use of or results obtained from information supplied by CCH.
The information provided by CCH includes history notes and other value-added features which are subject to CCH copyright. No CCH material may be copied, reproduced, republished, uploaded, posted, transmitted, or distributed in any way, except that you may download one copy for your personal use only, provided you keep intact all copyright and other proprietary notices. In particular, the reproduction of any part of the information for sale or incorporation in any product intended for sale is prohibited without CCH's prior consent.