Document ID: chunk:federal_register_of_legislation:C2019A00060:clause:1_67
Version: federal_register_of_legislation:C2019A00060
Segment Type: clause
Provision Reference: sch 1 cl 67
Character Range: 1942–3856

67  Allowable deductions from ordinary income
 (1) For the purpose of applying section 1072 of the Social Security Act in working out the rate of farm household allowance for a person, a person's ordinary income for a tax year is to be reduced in accordance with this section.
 (2) If:
 (a) during a tax year the person incurs an amount that has been prescribed to be an allowable deduction under paragraph (5)(a); and
 (b) at the time of incurring the amount, the person carries on a business that is wholly or partly a farm enterprise;
the person's ordinary income for the tax year is to be reduced by so much of the amount as:
 (c) relates to the farm enterprise; and
 (d) does not exceed the income earned by the person from the farm enterprise.
 (3) In working out the rate of farm household allowance for a person, section 1075 of the Social Security Act does not apply to income earned by the person from a farm enterprise.
 (4) If:
 (a) during a tax year the person incurs an amount that would, under Division 1A of Part 3.10 of the Social Security Act, reduce the person's ordinary income from a business that is not wholly or partly a farm enterprise for the tax year; and
 (b) the amount is not an amount covered by subsection (2);
the person's ordinary income for the tax year is to be reduced by so much of the amount as does not exceed the income earned by the person from the business.
 (5) The Minister's rules may do any or all of the following:
 (a) prescribe a kind of amount to be an allowable deduction for the purposes of paragraph (2)(a);
 (b) prescribe circumstances in which subsection (2) does not apply;
 (c) prescribe circumstances in which subsection (4) does not apply.
 (6) Without limiting paragraph (5)(a), the prescription of a kind of amount may include a maximum amount.
 (7) Subsection (6) does not limit the power to make Minister's rules for the purposes of subsection (5).