Document ID: chunk:federal_register_of_legislation:C2013C00581:clause:1_15:p1
Version: federal_register_of_legislation:C2013C00581
Segment Type: clause
Provision Reference: sch 1 cl 15 (pt 1/4)
Character Range: 19465–22215

15  At the end of Division 393 in Schedule 2G
Add:

Subdivision 393‑D—Special rules relating to financial claims scheme for account‑holders with insolvent ADIs

Guide to Subdivision 393‑D

393‑75  What this Subdivision is about
      A deposit (the new deposit) arising from:

                (a) an entitlement under Division 2AA of Part II of the Banking Act 1959 relating to a farm management deposit with an ADI; or
                (b) a distribution from liquidation of the ADI that is attributable to a farm management deposit;
      is treated as a transfer of the farm management deposit that does not give rise to new assessable income or deductions.

Table of sections

Operative provisions
393‑80 Farm management deposits arising from farm management deposits with ADIs subject to financial claims scheme
393‑85 Repayment if owner of farm management deposit with insolvent ADI is bankrupt, dies or ceases to be a primary producer

Operative provisions

393‑80  Farm management deposits arising from farm management deposits with ADIs subject to financial claims scheme

Application
 (1) This section applies if an entitlement arises under Division 2AA (Financial claims scheme for account‑holders with insolvent ADIs) of Part II of the Banking Act 1959 in connection with an account containing a farm management deposit (the old farm management deposit) with an ADI (the old ADI) and either:
 (a) an amount (the new deposit) is deposited into one of the following to meet, in whole or part, so much of the entitlement as relates to the old farm management deposit:
 (i) an existing account for a farm management deposit;
 (ii) an account established under section 16AH of that Act for the purposes of meeting (wholly or partly) the entitlement; or
 (b) an amount (also the new deposit) is deposited by a liquidator of the old ADI into one of the following as so much of a distribution from the liquidation of the old ADI as relates to the old farm management deposit:
 (i) an existing account for a farm management deposit;
 (ii) an account established under section 16AR of that Act for the payment of the distribution.
Note: If an amount is deposited in connection with an account with the old ADI containing 2 or more old farm management deposits, the amount is to be apportioned between each old farm management deposit, so that so much of the amount as is attributable to a particular old farm management deposit is regarded as a distinct new deposit relating to that old farm management deposit.

New deposit is a farm management deposit
 (2) This Division (except this section) applies to the new deposit as if it were a transfer of the old farm management deposit in accordance with a requirement of the agreement for the old farm