Document ID: chunk:federal_register_of_legislation:C2004C00927:clause:1_3:p4
Version: federal_register_of_legislation:C2004C00927
Segment Type: clause
Provision Reference: sch 1 cl 3 (pt 4/24)
Character Range: 420323–422954

were reduced by the *reduction amount.

Meaning of reduction amount

 (2) The reduction amount is:
  so much of the *tax profit on the disposal or death as is attributable to live stock of the species you are replacing;
divided by:
  the number of animals of that species that you disposed of or that died.

 (3) However, if:
 (a) you purchase a replacement animal of a different species from the *live stock it replaces; and
 (b) you pay substantially more for it than you could have paid for a replacement animal of the same species;
the reduction amount for the animal is any reasonable amount at least equal to the amount worked out under subsection (2).

Exception to avoid reducing unused tax profit to less than nil

 (4) However, if applying subsection (1) to a particular purchase would reduce the *unused tax profit on the disposal or death to less than nil, instead reduce the purchase price of each replacement animal in that purchase by:
  the *unused tax profit on the disposal or death;
divided by:
  the number of animals in the purchase.

385-125  Alternative election because of bovine tuberculosis has effect over 10 years not 5

  If you can make an election under this Subdivision because:
 (a) *live stock are compulsorily destroyed under an *Australian law for the control of bovine tuberculosis; or
 (b) *live stock die of that *disease;
sections 385-110 to 385-120 apply as if they referred to 10 income years instead of 5 years.

Subdivision 385-F—Insurance for loss of live stock or trees

Table of sections

385-130 Insurance for loss of live stock or trees

385-130  Insurance for loss of live stock or trees

  If your assessable income for an income year would otherwise include an insurance recovery for a loss of *live stock, or for a loss by fire of trees, that you hold as assets of a *primary production business you carry on in Australia, you can elect:
 (a) to include only 20% of the insurance recovery in your assessable income for that income year; and
 (b) to include 20% of the insurance recovery in your assessable income for each of the next 4 income years.

For rules about the making and effect of an election, see Subdivision 385-H.

Subdivision 385-G—Double wool clips

Table of sections

385-135 Election to defer including profit on second wool clip

385-135  Election to defer including profit on second wool clip

 (1) If your assessable income for an income year would otherwise include the *proceeds of the sale of 2 wool clips because fire, drought or flood causes you to shear your sheep earlier than normal, you can elect to include in your assessable income for