Document ID: chunk:federal_register_of_legislation:F2024C01248:clause:1c_2:p2
Version: federal_register_of_legislation:F2024C01248
Segment Type: clause
Provision Reference: sch 1C cl 2 (pt 2/2)
Character Range: 291761–293755

and the tax benefits will be lost.
 • The owner must be an individual who is carrying on a primary production business in Australia when the deposit is made.
 • The deposit must be made by only one individual and on behalf of only one individual.
 • Rights of the depositor must not be transferable to another entity.
 • The deposit must not be used as security for any amount that the depositor or any other entity owes to the FMD provider or any other entity.
 • Interest or other earnings on the deposit must not be invested as a farm management deposit with the FMD provider without having first been paid to the depositor.
 • If the depositor requests in writing, the FMD provider must electronically transfer the deposit, or part of the deposit, to another FMD provider that agrees to accept it as a farm management deposit.
 • The FMD provider must not deduct any fees from the principal of a farm management deposit. However, it may charge fees on the deposit.

Repayment of farm management deposits
  The tax benefits are not retained for deposit amounts repaid within the first 12 months after the deposit was made, unless the repayment is made:
 (a) because the owner:
 (i) dies; or
 (ii) becomes bankrupt; or
 (iii) ceases to carry on a primary production business in Australia and does not start carrying on such a business again within 120 days; or
 (iv) has requested the deposit, or part of the deposit, to be transferred to another FMD provider and the repayment relates to the transfer; or
 (b) because the circumstances specified in subsection 393‑40(3) of the Income Tax Assessment Act 1997 or in regulations made for the purposes of that subsection, relating to repayment in the event of severe drought, exist; or
 (c) because the circumstances specified in subsection 393‑40(3A) of the Income Tax Assessment Act 1997 or in regulations made for the purposes of that subsection, relating to repayment in the event of a natural disaster, exist.

Part 3—Additional information