Document ID: chunk:federal_register_of_legislation:C2025C00029:section:4:p3
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 4 (pt 3/11)
Character Range: 5479432–5482116

deposit was made, you stopped carrying on a primary production business in Australia—you started carrying on such a business again within 120 days (whether or not during the year); and
 (d) your *taxable non‑primary production income for the year is not more than $100,000; and
 (e) you do not die or become bankrupt during the year.
Note 1: This section does not apply if a deposit is reinvested, the term of a deposit is extended, or a deposit is transferred at the depositor's request: see sections 393‑15 and 393‑16.
Note 2: This Division applies to certain partners and beneficiaries as if they were individuals who carried on a primary production business: see subsections 393‑25(2), (3), (4), (5) and (6).

Sum of deductions not to exceed taxable primary production income
 (2) The sum of the deductions that you would otherwise be entitled to under this section for *farm management deposits made in the income year must not exceed your *taxable primary production income for the income year.

Amounts to be deducted in order of deposits
 (3) If you are entitled to deduct amounts in respect of 2 or more deposits, deduct the amounts in the order in which the deposits were made (until you reach the limit imposed by subsection (2)).

393‑10  Assessability on repayment of deposit

Amount assessable
 (1) Your assessable income for an income year includes the amount worked out using the following formula, if:
 (a) you are the *owner of a *farm management deposit; and
 (b) the deposit is repaid in full or in part in the year; and
 (c) the amount worked out using the formula is greater than nil:
Note 1: This subsection does not apply if the deposit is reinvested, the term of the deposit is extended, or the deposit is transferred at the depositor's request: see sections 393‑15 and 393‑16.
Note 2: In a case where not all of the deposit is deductible under section 393‑5, repayment of the non‑deductible amount can take place without the amount being assessable. Once that amount is repaid, the remainder is assessable when it is repaid, so that the deduction is recouped.
Example: Matt makes a farm management deposit of $120,000 on 1 April 2011. His taxable primary production income for the 2010—11 income year is $50,000; therefore, the deposit is only partly deductible in the year because it exceeds his taxable primary production income. Matt makes the following withdrawals from the deposit: $45,000 on 1 May 2013, $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