Document ID: chunk:federal_register_of_legislation:C2025C00029:section:4:p16
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 4 (pt 16/18)
Character Range: 5465944–5468886

all of your taxable non‑primary production income.)
 (3) If your taxable non‑primary production income is between $5,000 and $10,000, a shading‑out system applies so that your averaging component includes some of your taxable non‑primary production income as well as all of your taxable primary production income.
 (4) If your taxable non‑primary production income is $10,000 or more, your averaging component equals your taxable primary production income. Your averaging component does not include any of your taxable non‑primary production income.
 (5) The following diagram shows examples of these relationships.
 The second and third columns show that as taxable non‑primary production income increases above $5,000 (up to a maximum of $10,000), less of it is counted in the averaging component.

Your gross averaging amount

392‑70  Working out your gross averaging amount
  Your gross averaging amount is the amount of the difference between the following amounts worked out under section 392‑35:
 (a) the income tax you would pay at the comparison rate;
 (b) the amount of income tax that you would pay on your *basic taxable income for the *current year at *basic rates.

Your averaging adjustment

392‑75  Working out your averaging adjustment
  Work out your averaging adjustment for the *current year using the formula:

How to work out your averaging component

392‑80  Work out your taxable primary production income
 (1) Work out your taxable primary production income for the *current year in this way:

      Method statement
           Step 1. Compare your *assessable primary production income for the *current year with your *primary production deductions for the current year.
           Step 2. If your assessable primary production income is larger than your primary production deductions, your taxable primary production income is the difference between them.
           Step 3. If your primary production deductions are larger than (or equal to) your assessable primary production income, your taxable primary production income is nil.

Assessable primary production income
 (2) Your assessable primary production income for the *current year is the sum of:
 (a) any amount of your *basic assessable income for the current year that was *derived from, or resulted from, your carrying on a *primary production business; and
 (b) any amount included in your assessable income under section 420‑25 for the current year because you cease to *hold a *primary producer registered emissions unit; and
 (c) any amount of your basic assessable income for the current year to the extent that:
 (i) you are a beneficiary of a trust that is carrying on a primary production business; and
 (ii) the amount is your share of the trust's *net income that is attributable to, or resulted from, an amount being included in the trust's assessable income under section 420‑25 because the trust ceases to hold an *Australian carbon credit