Document ID: chunk:federal_register_of_legislation:C2025C00029:section:4:p4
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 4 (pt 4/11)
Character Range: 5481868–5484723

$40,000 on 1 March 2014 and $35,000 on 1 September 2015.
 The unrecouped FMD deduction immediately before the first repayment of $45,000 is $50,000. No amount is included in his assessable income for the 2012‑2013 income year because the difference between the unrecouped FMD deduction ($50,000) and the amount of the deposit remaining after the repayment ($75,000) is less than nil.
 The unrecouped FMD deduction immediately before the second repayment of $40,000 is $50,000. $15,000 is included in Matt's assessable income for the 2013‑2014 income year because the difference between the unrecouped FMD deduction ($50,000) and the amount of the deposit remaining after the second repayment ($35,000) is $15,000, which is greater than nil.
 The unrecouped FMD deduction immediately before the third repayment of $35,000 is $35,000; that is, $50,000 less $15,000. $35,000 is included in Matt's assessable income for the 2015‑2016 income year; that is, the difference between the unrecouped FMD deduction ($35,000) and the amount of the deposit remaining after the third repayment ($0).

Unrecouped FMD deduction
 (2) The unrecouped FMD deduction in respect of a *farm management deposit at a particular time is:
 (a) if no part of the deposit has been repaid before that time—the amount of the deduction under section 393‑5 for making the deposit; or
 (b) if one or more parts of the deposit have been repaid before that time—the unrecouped FMD deduction in respect of the deposit just before the most recent such repayment, reduced by any amount included in the *owner's assessable income under this section as a result of that repayment.
Example: Mia makes a deposit of $3,000, all of which is deductible. The deposit's unrecouped FMD deduction just before a first repayment of $1,000 is the amount of the deduction (that is, $3,000—see paragraph (2)(a)). The deposit's unrecouped FMD deduction just before a second repayment is $2,000 (that is, according to paragraph (2)(b), the unrecouped FMD deduction immediately before the first repayment ($3,000) reduced by the $1,000 included in Mia's assessable income as a result of the first repayment).
Note 1: If the deposit was originally an income equalisation deposit, see section 393‑10 of the Income Tax (Transitional Provisions) Act 1997.
Note 1A: Subsection 393‑16(3) affects the unrecouped FMD deduction of a consolidated farm management deposit.
Note 2: Section 393‑55 affects the unrecouped FMD deduction of a new deposit linked to an old deposit affected by Division 2AA (Financial claims scheme for account‑holders with insolvent ADIs) of Part II of 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)