Document ID: chunk:federal_register_of_legislation:C2010C00641:clause:1_4
Version: federal_register_of_legislation:C2010C00641
Segment Type: clause
Provision Reference: sch 1 cl 4
Character Range: 3038–5159

4  After section 393‑35 of Schedule 2G
Insert:

393‑37  Deposit not to be repaid within first 12 months

 (1) No part of the deposit must be repaid within 12 months after the end of the applicable depositing day (see subsection (2)), except:
 (a) if the deposit becomes required to be repaid in accordance with subsection 393‑40(3) (which covers death, bankruptcy and loss of primary producer status); or

Note: If the deposit is repaid within the 12 months other than because of death, bankruptcy or loss of primary producer status, under section 393‑45 the deposit will not be a farm management deposit, therefore there will be no income tax deduction. If the deposit is repaid within 12 months because of death, bankruptcy or loss of primary producer status, the deposit will still be a farm management deposit but there will only be an income tax deduction if the death etc. occurs after the year of income in which the deposit is made (see paragraph 393‑10(1)(c)).
 (b) by a transfer to another financial institution, in accordance with a requirement of the agreement concerned, as mentioned in subsection 393‑40(5).

 (2) The applicable depositing day is:
 (a) if none of the other paragraphs in this subsection applies—the day on which the deposit is made with the financial institution; or
 (b) if the deposit is made with the financial institution as a result of a request to which section 25B of the Loan (Income Equalization Deposits) Act 1976 applied—the day on which the deposit under that Act, that was the subject of the request, was made; or
 (c) if the deposit is made with the financial institution as a result of one or more transfers from other financial institutions in accordance with requirements of agreements as mentioned in subsection 393‑40(5), and paragraph (d) does not apply—the day on which the deposit was made with the first of the financial institutions; or
 (d) if the deposit is made with the financial institution as a result of a combination of a request as mentioned in paragraph (b) and one or more transfers as mentioned in paragraph (c)—the day applicable under paragraph (b).