Document ID: chunk:federal_register_of_legislation:C2025C00029:section:14:p5
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 14 (pt 5/19)
Character Range: 5512608–5515257

was made, for the purposes of subsections 393‑40(1) and (2) (about repayment of a farm management deposit within the first 12 months) and (3A) and (4) (about repayment in the event of an applicable natural disaster), is maintained for the new deposit (see subsection 393‑40(6)).
Note 2: Also, the unrecouped FMD deduction in respect of the new deposit is the same as the unrecouped FMD deduction in respect of the old deposit (see subsection 393‑15(3)), unless subsection (6) or (7) of this section applies because the new deposit is less than the old deposit.
 (3) In determining whether either of the following is a *farm management deposit, disregard a requirement contained in an agreement as set out in item 4 of the table in section 393‑35 (requiring the deposit to be $1,000 or more):
 (a) the new deposit;
 (b) a deposit made later directly by the transfer of the new deposit in accordance with a requirement of the relevant agreement for the new deposit as mentioned in item 13 of that table.

Unrecouped FMD deduction for new deposit less than old deposit
 (6) Despite subsection (2) and subsection 393‑15(3), if the new deposit is less than the old deposit at the time (the declaration time) the old ADI became a declared ADI under the Banking Act 1959, the unrecouped FMD deduction in respect of the new deposit is the amount worked out using the following formula:
Note: The new deposit could be less than the old deposit if the entitlement is paid in instalments (each of which will be a separate new deposit).
 (7) However, if the amount worked out under subsection (6) is more than the difference (if any) between:
 (a) the *unrecouped FMD deduction in respect of the old deposit just before the declaration time; and
 (b) the total of the amounts worked out under all previous applications of subsection (6) in relation to that old deposit;
the unrecouped FMD deduction in respect of the new deposit is equal to the difference (if any).
Note: This ensures that when new deposits linked to the old deposit are repaid, the total amount included in assessable income will not exceed the unrecouped FMD deduction in respect of the old deposit.

Relationship with other provisions
 (8) This section has effect despite Division 253 (about tax treatment of entitlements under the financial claims scheme for insolvent ADIs).

393‑60  Repayment if owner of farm management deposit with insolvent ADI dies, is bankrupt or ceases to be a primary producer
  Subsection 393‑10(4) does not apply in relation to so much of a *farm management deposit with an *ADI as is equal to the sum of the amounts described in subparagraphs (d)(i) and (ii) of