Document ID: chunk:federal_register_of_legislation:C2004C00958:clause:1_9:p8
Version: federal_register_of_legislation:C2004C00958
Segment Type: clause
Provision Reference: sch 1 cl 9 (pt 8/11)
Character Range: 678395–681626

Working out your averaging adjustment

  Work out your averaging adjustment for the *current year using the formula:

How to work out your averaging component

392‑80  Work out your taxable primary production income

 (1) Work out your taxable primary production income for the *current year in this way:

      Method statement

           Step 1. Compare your *assessable primary production income for the *current year with your *primary production deductions for the current year.

           Step 2. If your assessable primary production income is larger than your primary production deductions, your taxable primary production income is the difference between them.

           Step 3. If your primary production deductions are larger than (or equal to) your assessable primary production income, your taxable primary production income is nil.

Assessable primary production income

 (2) Your assessable primary production income for the *current year is the amount of your *basic assessable income for the current year that was *derived from, or resulted from, your carrying on a *primary production business.

Primary production deductions

 (3) Work out your primary production deductions for the *current year in this way:

      Method statement

           Step 1. Add any amounts you can deduct (except *apportionable deductions) for the *current year, so far as they reasonably relate to your *assessable primary production income for an income year.

           Step 2. Work out the result of applying the formula:

            where:

            assessable PP income means your *assessable primary production income for the *current year.

           Step 3. Add the sum from Step 1 to the result from Step 2 (which may be negative): the total is your primary production deductions.

392‑85  Work out your taxable non‑primary production income

 (1) Work out your taxable non‑primary production income for the *current year in this way:

      Method statement

           Step 1. Compare your *assessable non‑primary production income for the *current year with your *non‑primary production deductions for the current year.

           Step 2. If your assessable non‑primary production income is larger than your non‑primary production deductions, your taxable non‑primary production income is the difference between them.

           Step 3. If your non‑primary production deductions are larger than (or equal to) your assessable non‑primary production income, your taxable non‑primary production income is nil.

Assessable non‑primary production income

 (2) Your assessable non‑primary production income for the *current year is the difference between:

 (a) your *basic assessable income for the current year; and

 (b) your *assessable primary production income for the current year.

Non‑primary production deductions

 (3) Your non‑primary production deductions for the *current year are the difference between:

 (a) the sum of your deductions for the current year; and

 (b) your *primary production deductions for the current year.

392‑90  Work out your averaging component

 (1) Work out your averaging component for the *current year using the following table, taking