Document ID: chunk:federal_register_of_legislation:C2024C00866:section:52ca
Version: federal_register_of_legislation:C2024C00866
Segment Type: section
Provision Reference: s 52CA
Character Range: 749166–750688

52CA  Effect of certain liabilities on value of assets used in primary production
 (1) For the purposes of working out the value of a person's assets under this Act, if:
 (a) the person is:
 (i) a primary producer; or
 (ii) a family member of a primary producer; and
 (b) the person has assets (including real property) that are, in the Commission's opinion, used for the purposes of carrying on that primary production; and
 (c) the person also has liabilities that are, in the Commission's opinion, related to the carrying on of the primary production;
then:
 (d) section 52C does not apply in relation to the assets referred to in paragraph (b); and
 (e) those assets are taken to be a single asset (the primary production asset); and
 (f) the value of that single asset is worked out under subsection (2).
Note: For family member see subsection 5L(1).
 (2) The value of a person's primary production asset is worked out in the following way:

      Method statement
           Step 1. Add together the value of the assets referred to in paragraph (1)(b): the result is called the unencumbered value.
           Step 2. Add together the value of the liabilities referred to in paragraph (1)(c): the result is called the total liability.
           Step 3. Take the total liability away from the unencumbered value: the result is the value of the person's primary production asset.
 (3) If the result under Step 3 of the Method statement is less than nil, the value of the primary production asset is taken to be nil.