Document ID: chunk:federal_register_of_legislation:C2011C00610:clause:4_2:p5
Version: federal_register_of_legislation:C2011C00610
Segment Type: clause
Provision Reference: sch 4 cl 2 (pt 5/7)
Character Range: 178395–181187

deposit); and
 (b) subsection 393‑10(1) (about assessability of the repayment of a farm management deposit); and
 (c) subsections 393‑40(1) and (2) (about repayment of a farm management deposit within the first 12 months); and
 (d) subsections 393‑40(3) and (4) (about repayment of a farm management deposit in exceptional circumstances).

 (3) For the purposes of working out the *unrecouped FMD deduction for a deposit that is subject to a transaction mentioned in subsection (1), the transaction does not cause the deposit to be a different deposit.

Note: This ensures that the unrecouped FMD deduction (which affects how much income tax is assessed in the event of a repayment) equals the deduction for the original deposit, less any amount included in your assessable income because of a previous repayment of the deposit.

Subdivision 393‑B—Meaning of farm management deposit and owner

Table of sections

393‑20 Farm management deposits
393‑25 Owners of farm management deposits
393‑30 Effect of contravening requirements
393‑35 Requirements of agreement for a farm management deposit
393‑40 Repayment of deposit within first 12 months
393‑45 Partly repaid farm management deposits

393‑20  Farm management deposits

Meaning of farm management deposit

 (1) A deposit with an *FMD provider is a farm management deposit if:
 (a) the depositor applies to make the deposit in accordance with subsection (2); and
 (b) the deposit is made under an agreement between the FMD provider and the depositor that:
 (i) describes the deposit as a farm management deposit; and
 (ii) at all times while the deposit is with the FMD provider, contains requirements to the effect set out in the table in section 393‑35.
The agreement may also contain additional requirements that are not inconsistent with those set out in that table.

Depositor to provide information in application form

 (2) For the purposes of paragraph (1)(a), the depositor must apply to the *FMD provider to make the deposit by completing and signing a form that:
 (a) permits the depositor to state the *owner's *tax file number in the form; and
 (b) requires the depositor to provide any other information required by regulations for the purposes of this paragraph; and
 (c) contains any statements, required by regulations for the purposes of this paragraph, that are to be read by the depositor when completing the form.

Note 1: A depositor who makes a false or misleading statement in such a form commits an offence against section 8K or 8N of the Taxation Administration Act 1953.

Note 2: If the owner does not quote his or her tax file number or ABN to the FMD provider, the Pay as you go (PAYG) withholding required under section 12‑140 in Schedule 1 to the Taxation Administration Act 1953 from a repayment of the