Document ID: chunk:federal_register_of_legislation:C2025C00029:section:4:p2
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 4 (pt 2/18)
Character Range: 5432470–5435023

buy replacement stock or to maintain breeding stock for the purpose of replacing the live stock; or
 (iv) they are compulsorily destroyed under an *Australian law for the control of a *disease or they die of such a *disease; or
 (v) you receive an official notification under an *Australian law dealing with contamination of property; and
 (b) you held the live stock as assets of a *primary production business you carry on in Australia; and
 (c) apart from this Subdivision, your assessable income for any income year would include the *proceeds of the disposal or death.
 (2) The proceeds of the disposal or death are:
 (a) if you dispose of the *live stock or their carcases in the ordinary course of *business—the total of:
 (i) any amount you receive as payment for the live stock or carcases; and
 (ii) any compensation you receive for the death or destruction, or a reduction in *market value, of the live stock or their carcases from an *Australian government agency; or
 (b) if you dispose of the *live stock or their carcases outside the ordinary course of *business—the total of:
 (i) the market value of the live stock or their carcases, at the time of disposal; and
 (ii) any compensation you receive for the death or destruction, or a reduction in market value, of the live stock or their carcases from an *Australian government agency; or
 (c) if the *live stock die, and you do not dispose of their carcases to someone else—any compensation you receive for their death or destruction from an *Australian government agency.

385‑105  Election to spread tax profit over 5 years
 (1) You can elect:
 (a) to include in your assessable income for the *disposal year the *proceeds of the disposal or death, reduced by the *tax profit on the disposal or death; and
 (b) to include 20% of the tax profit on the disposal or death in your assessable income for the disposal year; and
 (c) to include 20% of the tax profit on the disposal or death in your assessable income for each of the next 4 income years.
For rules about the making and effect of an election, see Subdivision 385‑H.
 (2) The disposal year is the income year in which you dispose of the *live stock, or they die, as mentioned in subsection 385‑100(1).
 (3) The tax profit on the disposal or death is any amount remaining after subtracting from the *proceeds of the disposal or death the sum of:
 (a) the amount paid or payable for the purchase of as many of the *live stock as you purchased during the income year; and
 (b) the *value of the rest of the live stock as *trading