Document ID: chunk:federal_register_of_legislation:C2019A00104:clause:2_7b
Version: federal_register_of_legislation:C2019A00104
Segment Type: clause
Provision Reference: sch 2 cl 7B
Character Range: 7191–8498

7B  Definitions
 (1) A farm business:
 (a) is a business that is a farm enterprise; and
 (b) includes any directly related business.
 (2) A business is directly related to a business that is a farm enterprise if the operation of both businesses relies to a large extent on the use of shared equipment or other shared physical assets.
 (3) A farm business operates at a loss for a tax year if the income from the farm business for the tax year is less than the reductions for the farm business for the tax year.
 (4) The amount of the loss is the difference between the income and the reductions.
 (5) The income from a farm business for a tax year is:
 (a) the ordinary income for a person from the farm business for the tax year worked out under Part 3.10 of the Social Security Act assuming the person were the only person carrying on the farm business; but
 (b) without any reductions under Division 1A of that Part.
 (6) The reductions for a farm business for a tax year are the reductions that would be made from a person's ordinary income from the farm business for the tax year under Division 1A of Part 3.10 of the Social Security Act assuming:
 (a) the person were the only person carrying on the farm business; and
 (b) the income from the farm business for the tax year exceeded the reductions.