INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART III - LIABILITY TO TAXATION  

Division 16C - Income equalization deposits  

SECTION 159GA   INTERPRETATION  

159GA(1)   [Definitions]  

In this Division, unless the contrary intention appears:

"assessable primary production income"
, in relation to a taxpayer in relation to a year of income, means so much of the taxpayer's assessable income of the year of income as was derived from the carrying on by the taxpayer of a business of primary production in Australia;

"current IED scheme deposit"
means, subject to subsection (5), a deposit made after 30 June 1989 under the Deposits Act, other than a first IED scheme converted deposit;

"deposit"
means a current IED scheme deposit or a first IED scheme converted deposit;

"Deposits Act"
means the Loan (Income Equalization Deposits) Act 1976 ;

"eligible primary producer"
has the same meaning as in the Deposits Act;

"first IED scheme deposit"
has, subject to subsection (5), the same meaning as in Part 3 of the Income Equalization Deposits Laws Amendment Act 1989 ;

"first IED scheme converted deposit"
means a first IED scheme deposit that is assumed to be made on 1 July 1989 by section 23 of the Income Equalization Deposits Laws Amendment Act 1989 ;

"owner"
has the same meaning as in the Deposits Act;

"primary production deductions"
, in relation to a taxpayer in relation to a year of income, means:

(a) any deductions allowed or allowable to the taxpayer for the year of income that relate exclusively to the taxpayer's assessable primary production income of a year of income; and

(b) so much of any other deductions (other than apportionable deductions) allowed or allowable to the taxpayer for the year of income as, in the opinion of the Commissioner, may appropriately be related to the taxpayer's assessable primary production income of a year of income;

"taxable non-primary-production income"
, in relation to a taxpayer in relation to a year of income, means the amount (if any) by which:

(a) the taxable income of the taxpayer of the year of income, worked out disregarding any application of Parts 3-1 and 3-3 (about CGT) of the Income Tax Assessment Act 1997 or Part IIIA of this Act (including, in a case where the taxpayer's assessable income includes a share of the net income of a trust estate, in working out that net income);

exceeds:

(b) the taxable primary production income of the taxpayer of the year of income;

"taxable primary production income"
, in relation to a taxpayer in relation to a year of income, means the sum of the following:

(a) in any case - the amount (if any) by which the taxpayer's assessable primary production income for the year of income (derived other than as a trustee or a partner) exceeds the taxpayer's primary production deductions for the year of income (incurred other than as a trustee or a partner);

(b) if the taxpayer is a partner in a partnership - so much as the Commissioner considers reasonable of any amount that would result under paragraph (a) for the year of income if the partnership were a taxpayer; and

(c) if the taxpayer is a beneficiary presently entitled to a share of the net income of a trust estate - so much as the Commissioner considers reasonable of any amounts that would result under paragraphs (a) and (b) for the year of income if the trust estate were a taxpayer;

"unrecouped deduction"
has the meaning given by subsection (3).

159GA(2)    

159GA(3)   [Unrecouped deduction]  

For the purposes of this Division:

(a) an unrecouped deduction shall be deemed to exist in respect of a deposit made by a taxpayer if a deduction has been allowed or is allowable to the taxpayer under this Division in respect of the deposit and the amount of the deduction exceeds the amount, or the sum of the amounts, included in the assessable income of the taxpayer of any year of income in pursuance of this Division by reason that any part or parts of the deposit has or have become repayable; and

(b) the amount of the unrecouped deduction shall be deemed to be the amount of the excess referred to in paragraph (a).

159GA(4)   [Deduction deemed to exist]  

For the purposes of this Division, any unrecouped deduction existing in relation to a first IED scheme deposit that became a first IED scheme converted deposit shall be taken to exist in relation to the first IED scheme converted deposit.

159GA(5)   [Application of Deposits Act]  

Subject to paragraph (6)(a), subsections 4B(3) and (4) of the Deposits Act (which provide that interest on a deposit is in certain circumstances to be added to the balance of the deposit and to be taken always to have been part of the deposit) have effect for the purposes of this Division.

159GA(6)   [Effect of application of Deposits Act]  

If interest is added to the balance of a deposit in accordance with those provisions of the Deposits Act:

(a) section 159GC applies as if the interest added were a separate current IED scheme deposit of the owner; and

(b) the remainder of this Division applies to the deposit (as increased by the interest in accordance with subsection (5)) as if any deduction under subsection 159GC(1) in respect of the interest were instead in respect of the deposit.