Document ID: chunk:federal_register_of_legislation:C2022C00163:section:35
Version: federal_register_of_legislation:C2022C00163
Segment Type: section
Provision Reference: s 35
Character Range: 50029–51992

35  Meaning of farm assets and non‑farm assets
 (1) A farm asset is any asset that is used or held wholly or mainly for the purposes of a farm enterprise, but does not include the following:
 (a) cash;
 (b) money on deposit with an authorised deposit‑taking institution within the meaning of the Banking Act 1959;
 (c) a farm management deposit within the meaning of the Income Tax Assessment Act 1997;
 (d) an asset of a kind prescribed by the Minister's rules.
 (2) Without limiting subsection (1), each of the following is a farm asset:
 (a) a right or interest in land used wholly or mainly for the purposes of a farm enterprise;
 (b) a right or interest in livestock, crop, plant or equipment that:
 (i) is produce of a farm enterprise; or
 (ii) is used wholly or mainly for the purposes of a farm enterprise;
  other than any livestock, crop, plant or equipment leased out by the farm enterprise;
 (c) a water entitlement right that is used or held wholly or mainly for the purposes of a farm enterprise;
 (d) so much of a loan to which subsection (2A) applies as:
 (i) is used to purchase a thing covered by subsection (1) or paragraph (a), (b) or (c) of this subsection; and
 (ii) remains unpaid.
 (2A) This subsection applies to a loan at a particular time if:
 (a) it was made by a beneficiary of a trust to the trustee of the trust, or by a shareholder of a company to the company; and
 (b) the outstanding amount of the principal of the loan exceeds, at that time, the total value of all the financial investments:
 (i) the trustee has in the capacity of trustee; or
 (ii) the company has.
 (3) A non‑farm asset is an asset other than a farm asset.
Note 1: A farm management deposit (within the meaning of the Income Tax Assessment Act 1997) is an example of a non‑farm asset.
Note 2: The value of the person's principal home (if any) is not counted for the purposes of this Subdivision because of Division 1 of Part 3.12 of the Social Security Act.