Document ID: chunk:federal_register_of_legislation:C2013C00581:clause:1_15:p2
Version: federal_register_of_legislation:C2013C00581
Segment Type: clause
Provision Reference: sch 1 cl 15 (pt 2/4)
Character Range: 21992–24667

is a farm management deposit
 (2) This Division (except this section) applies to the new deposit as if it were a transfer of the old farm management deposit in accordance with a requirement of the agreement for the old farm management deposit as mentioned in subsection 393‑40(5). To avoid doubt, this Division applies in that way as if the amount transferred were the amount of the new deposit, even if that is more or less than the amount of the old farm management deposit.
Note 1: The effects of this include the following:
(a) the applicable depositing day for the old farm management deposit is maintained under paragraph 393‑37(7)(c) or (d) for the new deposit (which affects whether a withdrawal of the new deposit prevents it from being a farm management deposit);
(b) the new deposit is not regarded as a repayment of the old farm management deposit that is assessable income (see subsection 393‑50(5));
(c) the making of the new deposit does not give rise to a deduction (see subsection 393‑50(5)).
Note 2: Also, the unrecouped FMD deduction in respect of the new deposit is the same as the unrecouped FMD deduction in respect of the old farm management deposit (see subsection 393‑50(5)), unless subsection (6) or (7) of this section applies because the new deposit is less than the old farm management deposit.
 (3) Subsection 393‑35(5) does not apply in relation to either of the following to prevent it from being a farm management deposit:
 (a) the new deposit;
 (b) a deposit made later directly by the transfer of the new deposit in accordance with a requirement of the agreement for the new deposit as mentioned in subsection 393‑40(5).
Note: This means that the new deposit, or a deposit made as a direct result of the transfer of the new deposit, can be a farm management deposit (despite subsection 393‑45(1)) even if it is less than $1,000.
 (4) For the purposes of subsection 393‑35(7), disregard the old farm management deposit in determining whether a deposit made after the entitlement arises is a farm management deposit.
Note: This means that a deposit made with a financial institution other than the old ADI after the entitlement arises can be a farm management deposit (despite subsection 393‑45(1)) even though the owner of the deposit still has the old farm management deposit with the old ADI.
 (5) Subsection 393‑35(7) does not apply to the new deposit to prevent it from being a farm management deposit.
Note: This ensures that the new deposit can be a farm management deposit (despite subsection 393‑45(1)) even though the owner of the new deposit has other farm management deposits with other financial institutions when the new deposit