Taxation Determination TD 98/29



Ruling: This is the last Taxation Determination for the 1998 calendar year. The next Determination will be Taxation Determination TD 1999/1. Commissioner of Taxation 16 December 1998 Not previously released in draft form




1. Yes. If you are a primary producer who receives compensation payments for the destruction of your sheep, from an agreement made under the Victorian OJD control program stipulating that the sheep will be slaughtered, you are entitled to make an election (under either section 385-105 or section 385-110) to use the tax concessions available under Subdivision 385-E. | 2. Section 385-100 provides for circumstances in which a primary producer can elect either to: | 3. Paragraph 385-100(1)(a)(iv) provides that a primary producer can make an election under Subdivision 385-E if live stock are disposed of or die because 'they are compulsorily destroyed under an Australian law for the control of a disease or they die of such a disease'. | 4. A primary producer whose flock is subject to the OJD control program must either quarantine or destroy the flock. If you choose to destroy the live stock an agreement to do so is entered into under the Livestock Disease Control Act 1994 (Vic) and compensation is paid under that Act. The agreement stipulates, among other things, that the sheep will be slaughtered. | 5. If you enter into such an agreement for the slaughter of your sheep under the Victorian OJD control program you are accepted as having disposed of live stock by compulsory destruction under an Australian law within the terms of paragraph 385-100(1)(a)(iv).


Related rulings: IT 228
Legislative references: ITAA97 Pt 3-45 ITAA97 Div 385 ITAA97 Subdiv 385-E ITAA97 385-100 ITAA97 385-100(1)(a)(iv) ITAA97 385-105 ITAA97 385-110
Subject references: agriculture livestock diseases livestock disposal livestock industry livestock losses primary production sheep industry