Document ID: chunk:federal_register_of_legislation:C2004A01344:clause:3_49y:p1
Version: federal_register_of_legislation:C2004A01344
Segment Type: clause
Provision Reference: sch 3 cl 49Y (pt 1/3)
Character Range: 74496–77275

49Y  Does a person satisfy the sugarcane farmers' income test?

How to work out whether the sugarcane farmers' income test is satisfied

 (1) This is how to work out whether a person who has transferred his or her eligible interest in a sugarcane farm or sugarcane farms satisfies the sugarcane farmers' income test for the purposes of this Division:

      Method statement
           Step 1. Work out under subsection (2) the amount of the person's ordinary income (other than ordinary income from farming) for each of the last 3 financial years before the applicable completion day (the income test years).
            If the person was a member of a couple on the applicable completion day, work out also under subsection (2) the amount of his or her partner's ordinary income (other than ordinary income from farming) for the 3 income test years.
            Add up all the amounts so obtained. The result is called the person's total non‑farm income.
           Step 2. Work out under subsection (3) the amount of the person's ordinary income from farming for each of the 3 income test years.
            If the person was a member of a couple on the applicable completion day, work out also under subsection (3) the amount of his or her partner's ordinary income from farming for the 3 income test years.
            Add up all the amounts of positive income for both the person and the person's partner and deduct from that total the amounts of negative income (if any) for both the person and the person's partner. The result is called the person's total farm income (which may be either positive or negative).
           Step 3. Work out the person's total income for the 3 income test years:

                (a) if the person's total farm income is a positive amount—by adding that amount to the amount of the person's total non‑farm income; or
                (b) if the person's total farm income is a negative amount—by deducting that amount from the amount of the person's total non‑farm income.

           Step 4. Work out under subsection (4) the maximum basic rate for age service pension applicable to the person. Multiply that rate by 3. The result is called the person's maximum basic entitlement.
           Step 5. If the person's total income for the 3 income test years is less than the person's maximum basic entitlement, the person satisfies the sugarcane farmers' income test for the purposes of this Division.
            If the person's total income for the 3 income test years equals or exceeds the person's maximum basic entitlement, the person does not satisfy the sugarcane farmers' income test for the purposes of this Division.

Person's ordinary income from all sources other than farming

 (2) For the purpose of working out a person's