Document ID: chunk:federal_register_of_legislation:C2013C00581:clause:1_15:p3
Version: federal_register_of_legislation:C2013C00581
Segment Type: clause
Provision Reference: sch 1 cl 15 (pt 3/4)
Character Range: 24408–27092

farm management deposit.
Note: This ensures that the new deposit can be a farm management deposit (despite subsection 393‑45(1)) even though the owner of the new deposit has other farm management deposits with other financial institutions when the new deposit is made.

Unrecouped FMD deduction for new deposit less than old farm management deposit
 (6) Despite subsection (2) and paragraph 393‑50(5)(c), if the new deposit is less than the old farm management deposit at the time (the declaration time) the old ADI became a declared ADI under the Banking Act 1959, the unrecouped FMD deduction in respect of the new deposit is the amount worked out using the formula:

Note: The new deposit could be less than the old farm management deposit if the entitlement is paid in instalments (each of which will be a separate new deposit).
 (7) However, if the amount worked out under subsection (6) is more than the difference (if any) between:
 (a) the unrecouped FMD deduction in respect of the old farm management deposit just before the declaration time; and
 (b) the total of the amounts worked out under all previous applications of subsection (6) in relation to that old farm management deposit;
the unrecouped FMD deduction in respect of the new deposit is equal to the difference (if any).
Note: This ensures that when new deposits linked to the old farm management deposit are repaid, the total amount included in assessable income will not exceed the unrecouped FMD deduction in respect of the old farm management deposit.

Relationship with other provisions
 (8) This section has effect despite Division 253 of the Income Tax Assessment Act 1997 (which is about tax treatment of entitlements under the financial claims scheme for insolvent ADIs).

393‑85  Repayment if owner of farm management deposit with insolvent ADI dies, is bankrupt or ceases to be a primary producer
 (1) This section applies if:
 (a) you are the owner of a farm management deposit with an ADI that becomes repayable during a year of income in accordance with a requirement of the agreement concerned to the effect mentioned in subsection 393‑40(3) (which covers death, bankruptcy and ceasing to be a primary producer); and
 (b) during the year of income the ADI becomes a declared ADI under Division 2AA (Financial claims scheme for account‑holders with insolvent ADIs) of Part II of the Banking Act 1959; and
 (c) at the end of the year of income, you have either or both of the following:
 (i) an unmet entitlement under that Division connected with the account for the farm management deposit;
 (ii) an unmet claim against the ADI, or an unpaid debt owed to you by the ADI, in the winding up of the