Document ID: chunk:federal_register_of_legislation:C2025C00029:section:4:p5
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 4 (pt 5/11)
Character Range: 5484479–5487162

the Banking Act 1959.

Application of Division to transfer, reinvestment or other dealing
 (3) This Division applies to a transfer, reinvestment or other dealing with a *farm management deposit as if it were a repayment of the deposit, if:
 (a) you are the depositor; and
 (b) the transfer, reinvestment or other dealing is on your behalf or at your request.
Note: Section 393‑15 modifies the application of the deduction, assessment and 12 month rules to certain transfers, reinvestments and other dealings.

Deemed repayment because of death, bankruptcy etc.
 (4) This section applies as if a *farm management deposit had been repaid when it became repayable, rather than when it is actually repaid, if the deposit became repayable because of the requirement contained in the relevant agreement as set out in item 11 of the table in section 393‑35 (death, bankruptcy etc.).
Note 1: This means that the amount of the deposit is included in your assessable income for the income year when the death, bankruptcy etc. occurs, rather than for any later year in which the deposit might be repaid.
Note 2: This also means that, under subsection 45‑120(5) in Schedule 1 to the Taxation Administration Act 1953 (about Pay as you go (PAYG) instalments), the amount of the deposit is included in your instalment income for the period in which the death, bankruptcy etc. occurs.
 However, under section 12‑140 in that Schedule, an amount may also be required to be withheld from the actual payment if you do not quote your tax file number or ABN to the relevant FMD provider.
Note 3: Section 393‑60 of this Act may limit the operation of subsection (4) if the farm management deposit is with an ADI that becomes a declared ADI under Division 2AA (Financial claims scheme for account‑holders with insolvent ADIs) of Part II of the Banking Act 1959.

393‑15  Transactions to which the deduction, assessment and 12 month rules have modified application
 (1) The provisions mentioned in subsection (2) do not apply in relation to the following transactions:
 (a) the immediate reinvestment of a *farm management deposit as a farm management deposit with the same *FMD provider;
 (b) the extension of the term of a farm management deposit (even if other terms such as those relating to interest payable are also varied);
 (c) the transfer of a farm management deposit in accordance with a requirement of the relevant agreement as set out in item 13 of the table in 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