Document ID: chunk:federal_register_of_legislation:C2025C00029:section:14:p10
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 14 (pt 10/19)
Character Range: 5524928–5527452

event, work out the amount included in your assessable income under subsection (2) using this formula (instead of using the amount worked out under subsection (2)):
 (6) If this section has operated previously in relation to the *forestry interest, disregard an amount for the purposes of subsections (3) and (4) to the extent that it has already been reflected in your assessable income under that previous operation in relation to the forestry interest.
 (7) These provisions do not apply to the *CGT event:
 (a) section 6‑5 (about *ordinary income);
 (b) any other provision that includes an amount in assessable income, other than the following:
 (i) a provision in Part 3‑1 or 3‑3;
 (ii) subsection (2) of this section;
 (c) section 8‑1 (about amounts you can deduct);
 (d) any other provision that allows you to deduct an amount from your assessable income;
 (e) section 118‑20.
 (8) However, the provisions referred to in subsection (7) can apply to the *CGT event if a *capital gain or *capital loss from the event is disregarded because of section 118‑25.
 (9) Just before the *CGT event, increase the *cost base and *reduced cost base of the *forestry interest by the amount included in your assessable income under subsection (2).

394‑35  70% DFE rule
 (1) A *forestry managed investment scheme satisfies the 70% DFE rule on 30 June in an income year if it is reasonable to expect on that 30 June that the amount of DFE under the scheme (see subsection (2)) is no less than 70% of the amount of the payments under the scheme (see subsection (3)).
 (2) The amount of DFE under the scheme is the amount of the net present value (on that 30 June) of all *direct forestry expenditure under the scheme that the *forestry manager of the scheme has paid or will pay under the scheme.
 (3) The amount of payments under the scheme is the amount of the net present value (on that 30 June) of all amounts that all current and future *participants in the scheme have paid or will pay under the scheme.
 (4) In working out the net present value of an amount paid before that 30 June:
 (a) unless paragraph (b) applies—treat the amount as having been paid on that 30 June; or
 (b) if the amount was paid in an income year ending before that 30 June—treat the amount as having been paid on the 30 June in that income year.
 (5) In working out the net present value of an amount expected to be paid after that 30 June, treat the amount as having been paid on 1 January in the income year in which it is expected to be paid.
 (6)