Document ID: chunk:federal_register_of_legislation:C2004C00958:clause:1_9:p9
Version: federal_register_of_legislation:C2004C00958
Segment Type: clause
Provision Reference: sch 1 cl 9 (pt 9/11)
Character Range: 681367–684758

the sum of your deductions for the current year; and

 (b) your *primary production deductions for the current year.

392‑90  Work out your averaging component

 (1) Work out your averaging component for the *current year using the following table, taking into account:

 (a) your *taxable primary production income for the current year; and

 (b) your *taxable non‑primary production income for the current year.

Averaging component
                     If *taxable                                  The averaging component equals:
                     non‑primary production income:               for *taxable primary production income > 0                                        for *taxable primary production income = 0
Item
  1                  is nil                                       *Basic taxable income                                                             Nil
  2                  is more than nil but does not exceed $5,000  *Basic taxable income                                                             *Basic taxable income
  3                  exceeds $5,000 but does not exceed $10,000   *Taxable primary production income plus *non‑primary production shade‑out amount  *Non‑primary production shade‑out amount
  4                  is $10,000 or more                           *Taxable primary production income                                                Nil

Note: Subsections (2) and (3) explain how to work out your non‑primary production shade‑out amount if your taxable non‑primary production income is between $5,000 and $10,000.

Non‑primary production shade‑out amount if your taxable primary production income is more than nil

 (2) If your *taxable primary production income is more than nil, your non‑primary production shade‑out amount is the amount worked out using the formula:

Non‑primary production shade‑out amount if your taxable primary production income is nil

 (3) If your *taxable primary production income is nil, your non‑primary production shade‑out amount is the amount worked out using the formula:

However, if that amount is less than nil, your non‑primary production shade‑out amount is nil.

 (4) In this section:

Assessable PP income means your *assessable primary production income for the *current year.

PP deductions means your *primary production deductions for the *current year.

Taxable non‑PP income your *taxable non‑primary production income for the *current year.

Subdivision 392‑D—Effect of permanent reduction of your basic taxable income

Table of sections

392‑95 You are treated as if you had not carried on business before

392‑95  You are treated as if you had not carried on business before

Choosing to discontinue and restart averaging

 (1) You can choose that this Division not affect your income tax liability for an income year (the reduction year) if you show the Commissioner that, because of retirement from your occupation or from any other cause, your *basic taxable income for the reduction year is permanently reduced during that year to less than two thirds of your *average income for that year.

 (1A) You must make the choice by notifying the Commissioner in writing by the day you lodge your *income tax return for the reduction year. However, the Commissioner can allow you to make it later.

 (1B) If you make a choice under subsection (1), this Division