Document ID: chunk:federal_register_of_legislation:C2025C00029:section:4:p6
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 4 (pt 6/11)
Character Range: 5486929–5489700

section 393‑35 (which allows for transfers of deposits at the request of the depositor).
Note: This means that these transactions:
(a) will not result in assessable income for the owner; and
(b) will not give rise to a deduction; and
(c) will not, if the transaction occurs within 12 months after the end of the day the deposit is made, result in the deposit losing its status as a farm management deposit.
 (2) The provisions are:
 (a) section 393‑5 (about deductions for making a farm management deposit); and
 (b) subsection 393‑10(1) (about assessability of the repayment of a farm management deposit); and
 (c) subsections 393‑40(1) and (2) (about repayment of a farm management deposit within the first 12 months); and
 (ca) subsection 393‑40(3) (about repayment of a farm management deposit in the event of severe drought); and
 (d) subsections 393‑40(3A) and (4) (about repayment of a farm management deposit in the event of an applicable natural disaster).
 (3) For the purposes of working out the *unrecouped FMD deduction for a deposit that is subject to a transaction mentioned in subsection (1), the transaction does not cause the deposit to be a different deposit.
Note: This ensures that the unrecouped FMD deduction (which affects how much income tax is assessed in the event of a repayment) equals the deduction for the original deposit, less any amount included in your assessable income because of a previous repayment of the deposit.

393‑16  Consolidation of farm management deposits
 (1) The provisions mentioned in subsection (2) do not apply in relation to the immediate reinvestment of 2 or more *farm management deposits (original deposits) if:
 (a) just before the reinvestment occurs the balance of each of the original deposits is equal to the *unrecouped FMD deduction for the deposit; and
 (b) the original deposits are immediately reinvested as a single farm management deposit with the same *FMD provider, or with a different FMD provider; and
 (c) just before the reinvestment occurs the original deposits have each been held for a period of at least 12 months.
Note: This means that the reinvestment:
(a) will not result in assessable income for the owner; and
(b) will not give rise to a deduction.
 (2) The provisions are:
 (a) section 393‑5 (about deductions for making a farm management deposit); and
 (b) subsection 393‑10(1) (about assessability of the repayment of a farm management deposit).
 (3) Despite paragraph 393‑10(2)(a), the unrecouped FMD deduction in respect of the *farm management deposit at a time before any part of the deposit has been repaid is the sum of the unrecouped FMD deductions in respect of each of the original deposits just before the reinvestment occurred.
 (4) Section 393‑40 (about the repayment of