Document ID: chunk:federal_register_of_legislation:C2004A01344:clause:3_49y:p2
Version: federal_register_of_legislation:C2004A01344
Segment Type: clause
Provision Reference: sch 3 cl 49Y (pt 2/3)
Character Range: 77020–79598

exceeds the person's maximum basic entitlement, the person does not satisfy the sugarcane farmers' income test for the purposes of this Division.

Person's ordinary income from all sources other than farming

 (2) For the purpose of working out a person's ordinary income from all sources other than farming during a financial year, the following provisions have effect:
 (a) Divisions 1, 4, 6 and 7 of this Part apply to the person;
 (b) Division 2 of this Part applies to the person as if any reference in that Division to a tax year were a reference to that financial year;
 (c) Division 3 of this Part does not apply to the person;
 (d) any return on a financial asset that the person has actually received during the financial year is taken to be ordinary income of the person.

Person's ordinary income from farming

 (3) For the purpose of working out a person's ordinary income from farming during a financial year, the following provisions have effect:
 (a) Divisions 1, 4, 6 and 7 of this Part apply to the person;
 (b) Division 2 of this Part applies to the person as if:
 (i) any reference in subsection 46B(1) to a tax year were a reference to that financial year; and
 (ii) subsection 46B(2) and section 46C were omitted;
 (c) Division 3 of this Part does not apply to the person;
 (d) any return on a financial asset that the person has actually received during the financial year and that relates to a farm or a relevant farm asset is taken to be ordinary income of the person from farming;
 (e) if, at the end of the financial year, the value of all trading stock on hand that relates to a farm is less than the value of all such trading stock on hand at the beginning of that financial year—the amount of the difference is to be deducted from that part of the person's ordinary income from farming for that financial year that is income in the form of profits;
 (f) there is also to be deducted from the person's ordinary income from farming:
 (i) losses and outgoings that relate to a business of primary production and are allowable deductions under section 8‑1 of the Income Tax Assessment Act 1997; and
 (ii) deductions for the cost of depreciating assets that are used in a business of primary production and are allowable deductions under Subdivisions 40‑A to 40‑E (inclusive), or Division 328, of the Income Tax Assessment Act 1997; and
 (iii) contributions that are allowable deductions under sections 82AAC, 82AAD, 82AADA and 82AAF of the Income Tax Assessment Act 1936;
 (g) if a negative result is obtained after applying paragraphs (e) and (f)—the