Document ID: chunk:federal_register_of_legislation:C2025C00029:section:14:p6
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 14 (pt 6/19)
Character Range: 5515038–5517847

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 this section if:
 (a) you are the *owner of the deposit; and
 (b) the deposit becomes repayable during an income year because of the requirement contained in the relevant agreement as set out in item 11 of the table in section 393‑35 (death, bankruptcy etc.); and
 (c) during the income year, the ADI becomes a declared ADI under Division 2AA (Financial claims scheme for account‑holders with insolvent ADIs) of Part II of the Banking Act 1959; and
 (d) at the end of the income year, you have either or both of the following:
 (i) an unmet entitlement under that Division connected with the account for the farm management deposit;
 (ii) an unmet claim against the ADI, or an unpaid debt owed to you by the ADI, in the winding up of the ADI connected with the account for the deposit.
Note: Subsection 393‑10(4) makes the repayment of a farm management deposit assessable in the income year when the death, bankruptcy etc. occurs, rather than in any later year in which it might be repaid.

Division 394—Forestry managed investment schemes

Guide to Division 394

394‑1  What this Division is about
      This Division sets out rules about deductions for contributions to forestry managed investment schemes. It also sets out the tax treatment of proceeds from the sale of interests in such schemes, and of proceeds from harvesting trees under such schemes.

Table of sections
394‑5 Object of this Division
394‑10 Deduction for amounts paid under forestry managed investment schemes
394‑15 Forestry managed investment schemes and related concepts
394‑20 Payments on behalf of participant in forestry managed investment scheme
394‑25 CGT event in relation to forestry interest in forestry managed investment scheme—initial participant
394‑30 CGT event in relation to forestry interest in forestry managed investment scheme—subsequent participant
394‑35 70% DFE rule
394‑40 Payments under forestry managed investment scheme
394‑45 Direct forestry expenditure

394‑5  Object of this Division
  The object of this Division is to encourage the expansion of commercial plantation forestry in Australia through the establishment and tending of new plantations for felling. This is achieved by:
 (a) permitting investors to deduct amounts paid under a forestry scheme in the year of payment, if certain conditions are met (for example, that it is reasonable to expect that the manager of the scheme will spend at least 70% of investors' contributions, on a market value basis, on activities that establish, tend, fell and harvest trees); and
 (b) allowing secondary market trading of interests in