Document ID: chunk:federal_register_of_legislation:C2025C00029:section:4:p11
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 4 (pt 11/18)
Character Range: 5453989–5456650

basic taxable income
 (1) Work out your basic taxable income for an income year as follows:

      Method statement
           Step 1. Work out what would have been your taxable income for the income year if your assessable income for the income year:

                (a) had not included any amount under section 82‑65, 82‑70 or 302‑145 of the Income Tax Assessment Act 1997 (certain superannuation benefits and employment termination payments); and

                  Note: This means that certain deductions will also be excluded.

                (b) had not included any *net capital gain for the income year.

           Step 2. Subtract from the Step 1 amount any *above‑average special professional income included in your taxable income for the income year under Division 405.
 (2) However, your basic taxable income for an income year is nil if:
 (a) you do not have a taxable income for the income year; or
 (b) the amount worked out under subsection (1) for the income year is less than nil.

392‑20  Trust beneficiaries taken to be carrying on primary production business
 (1) You are taken to carry on a *primary production business carried on by a trust during an income year if you satisfy the requirements in subsection (2), (3) or (4).

Primary production business carried on by a trust with beneficiary presently entitled to income of the trust
 (2) You satisfy the requirements in this subsection if:
 (a) you are a beneficiary of the trust referred to in subsection (1); and
 (b) you are presently entitled to a share of the income of the trust for the income year; and
 (c) if you are presently entitled to less than $1,040 of the income of the trust for the income year—the Commissioner is satisfied that your interest in the trust was not acquired or granted wholly or primarily to enable your income tax to be adjusted under this Division.

Primary production business carried on by a fixed trust with no income of the trust
 (3) You satisfy the requirements in this subsection if:
 (a) you are a beneficiary of the trust referred to in subsection (1); and
 (b) at all times during the income year, the manner or extent to which each beneficiary of the trust can benefit from the trust is not capable of being significantly affected by the exercise, or non‑exercise, of a power; and
 (c) the trust does not have any income of the trust for the income year to which a beneficiary of the trust could be presently entitled; and
 (d) if the trust had income of the trust for the income year, you would have been presently entitled to a share of the income of the trust.

Primary production business carried on by a non‑fixed trust with no