Document ID: chunk:federal_register_of_legislation:C2011C00610:clause:4_14:p2
Version: federal_register_of_legislation:C2011C00610
Segment Type: clause
Provision Reference: sch 4 cl 14 (pt 2/6)
Character Range: 190862–193607

is issued in respect of that owner;
 (d) a declaration of exceptional circumstances (as referred to in paragraph 8(c) of the Rural Adjustment Act 1992) was not in force in relation to that primary production business when the deposit was made.

 (4) Any later deposit that is made by, or on behalf of, that *owner in the income year in which the repayment is made is not, and is taken never to have been, a farm management deposit.

Repayment in the case of death, bankruptcy or ceasing to carry on a primary production business

 (5) Subsections (1) and (2) do not apply to a repayment of a *farm management deposit because of the requirement contained in the relevant agreement as set out in item 11 of the table in section 393‑35 (death, bankruptcy etc.).

Certain transactions do not affect the day the deposit was made

 (6) Subsections (1) to (4) apply as if a *farm management deposit that:
 (a) is made as a result of a transaction mentioned in subsection 393‑15(1) (about reinvesting a deposit, extending the term of a deposit and transferring a deposit at the depositor's request); or
 (b) is affected by such a transaction;
were made on the day on which the original deposit was made.

Example: A farm management deposit is made on 1 July 2010 for a term of 6 months, but is extended in December 2010 for another 6 months. For the purposes of subsections (1) to (4), the day the extended deposit was made remains as 1 July 2010.

Note: Section 393‑40 of the Income Tax (Transitional Provisions) Act 1997 provides for a special rule for deposits transferred under the repealed Loan (Income Equalization Deposits) Act 1976.

393‑45  Partly repaid farm management deposits

  A reference to a farm management deposit is a reference to so much of the deposit as has not been repaid.

Subdivision 393‑C—Special rules relating to financial claims scheme for account‑holders with insolvent ADIs

Guide to Subdivision 393‑C

393‑50  What this Subdivision is about

      A deposit (the new deposit) arising from:

                (a) an entitlement under Division 2AA (Financial claims scheme for account‑holders with insolvent ADIs) of Part II of the Banking Act 1959 relating to a farm management deposit (the old deposit); or
                (b) a distribution from liquidation of an ADI that is attributable to a farm management deposit (also the old deposit);
      is treated as a transfer of the old deposit and does not give rise to new assessable income or deductions.

Table of sections

Operative provisions

393‑55 Farm management deposits arising from farm management deposits with ADIs subject to financial claims scheme
393‑60 Repayment if owner of farm management deposit with insolvent ADI dies, is bankrupt or ceases