Document ID: chunk:federal_register_of_legislation:C2004C00958:clause:1_9:p2
Version: federal_register_of_legislation:C2004C00958
Segment Type: clause
Provision Reference: sch 1 cl 9 (pt 2/11)
Character Range: 663418–666191

in the example in subsection (1).

Note: The example assumes that all the basic taxable income was from a primary production business, and that the taxpayer's tax‑free threshold was not affected by family tax assistance (under Division 5 of Part II of the Income Tax Rates Act 1986).

Effect of non‑primary production income on averaging adjustment

 (5) Your income from sources other than your *primary production business may affect the adjustment of your income tax. If more than $5,000 of your *basic taxable income is attributable to those sources, your *averaging adjustment will be reduced to reflect the proportion of your basic taxable income attributable to primary production. (There are special shading‑out arrangements if your taxable income from other sources is between $5,000 and $10,000.)

No adjustment in certain cases

 (6) Your income tax will not be adjusted under this Division in certain cases. In particular, you can choose not to have your income tax adjusted under this Division for the rest of your life.

Subdivision 392‑A—Is your income tax affected by averaging?

Table of sections

392‑10 Individuals who carry on a primary production business
392‑15 Meaning of basic taxable income
392‑20 Trust beneficiaries taken to be carrying on primary production business
392‑25 Choosing not to have your income tax averaged

392‑10  Individuals who carry on a primary production business

 (1) This Division applies to your assessment for the *current year if:

 (a) you are an individual; and

 (b) you have carried on a *primary production business in Australia for 2 or more income years in a row (the last of which is the current year); and

 (c) for at least one of those income years your *basic taxable income is less than or equal to your basic taxable income for the next of those income years.

Note 1: It follows that this Division does not apply if your basic taxable income has decreased every income year since you started carrying on a primary production business.

Note 2: In working out whether this Division applies to your assessment for an income year, you may need to take account of income years before the 1998‑99 income year: see section 392‑1 of the Income Tax (Transitional Provisions) Act 1997.

Continued application of this Division after you stop carrying on a primary production business

 (2) This Division also applies to your assessment for the *current year if:

 (a) this Division applied to your assessment for an earlier income year during which you carried on a *primary production business in Australia; and

 (b) you do not carry on that business during the current year; and

 (c) at least one of the following conditions is met for each income year (including the current year) after