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Edited version of private advice
Authorisation Number: 1051791280346
Date of advice: 16 December 2020
Ruling
Subject: Farm management deposit
Question
Are you entitled to a deduction in the 20XX-XX financial year for the full amount of your Farm Management Deposit (FMD) under Division 393 of the Income Tax Assessment Act 1997 (ITAA 1997)?
Answer
Yes.
Having considered your circumstances and the relevant facts. It is accepted that you requested an FMD in the 20XX-XX financial year, you met the conditions of a 'farm management deposit' and all relevant requirements outlined in the table in section 393-35 of the ITAA 1997. The Commissioner will allow a deduction in the 20XX-XX for the amount of the deposit.
This ruling applies for the following period:
Year ended 30 June 20XX
The scheme commences on:
1 July 20XX
Relevant facts and circumstances
You applied for a FMD in your name.
You are an individual carrying on a primary production business as a partner in a partnership in Australia with your taxable non-primary production income being less than $100,000.
You have not been declared bankrupt.
A bank acknowledged via a letter that an FMD was requested to be established for the 20XX-XX financial year for each member of the partnership. A processing error by a bank resulted in only one account being established for the combined value.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 393-5
Income Tax Assessment Act 1997 section 393-20
Income Tax Assessment Act 1997 section 393-35