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This is a Bill, not an Act. For current law, see the Acts databases.
2002
The Parliament of
the
Commonwealth of
Australia
HOUSE OF
REPRESENTATIVES
Presented and read a first
time
Taxation
Laws Amendment (Earlier Access to Farm Management Deposits) Bill
2002
No. ,
2002
(Treasury)
A Bill
for an Act to amend the law relating to taxation, and for related
purposes
Contents
Part 1—Amendments that are taken to have commenced on
2 January 1999 3
Part 2—Amendments that are taken to have commenced on
1 July 2002 5
A Bill for an Act to amend the law relating to taxation,
and for related purposes
The Parliament of Australia enacts:
This Act may be cited as the Taxation Laws Amendment (Earlier Access
to Farm Management Deposits) Act 2002.
(1) Each provision of this Act specified in column 1 of the table
commences, or is taken to have commenced, on the day or at the time specified in
column 2 of the table.
|
Commencement information |
||
|---|---|---|
|
Column 1 |
Column 2 |
Column 3 |
|
Provision(s) |
Commencement |
Date/Details |
|
1. Sections 1 to 4 and anything in this Act not elsewhere covered by
this table |
The day on which this Act receives the Royal Assent |
|
|
2. Schedule 1, Part 1 |
2 January 1999 |
|
|
3. Schedule 1, Part 2 |
1 July 2002 |
|
Note: This table relates only to the provisions of this Act
as originally passed by the Parliament and assented to. It will not be expanded
to deal with provisions inserted in this Act after assent.
(2) Column 3 of the table is for additional information that is not part
of this Act. This information may be included in any published version of this
Act.
Each Act that is specified in a Schedule to this Act is amended or
repealed as set out in the applicable items in the Schedule concerned, and any
other item in a Schedule to this Act has effect according to its
terms.
Section 170 of the Income Tax Assessment Act 1936 does not
prevent the amendment of an assessment made before the commencement of this
section for the purpose of giving effect to this Act.
Part 1—Amendments
that are taken to have commenced on 2 January 1999
1 Section 393-25 of Schedule 2G
(definition of farm management deposit)
After “, 393-35”, insert “, 393-37”.
2 After subsection 393-30(2) of
Schedule 2G
Insert:
Deposit not to be repaid within first 12 months
(2A) The deposit must comply with section 393-37.
3 Subsections 393-35(12) and (13) of
Schedule 2G
Repeal the subsections.
4 After section 393-35 of
Schedule 2G
Insert:
(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).
5 Subsection 393-40(2) of
Schedule 2G
Repeal the subsection.
6 Subsection 393-45(3) of
Schedule 2G
Omit “, (11) or (12)”, substitute “or (11) or
section 393-37”.
Part 2—Amendments
that are taken to have commenced on 1 July 2002
7 At the end of subsection 393-10(1) of
Schedule 2G
Add:
Note 4: Subdivision B contains other rules that affect the
extent to which a deposit can be a farm management deposit.
8 At the end of subsection 393-15(1) of
Schedule 2G
Add:
Note 3: Subdivision B contains other rules that affect the
extent to which a withdrawal is a repayment of a farm management
deposit.
9 Subsection 393-15(2) of Schedule 2G
(note)
Omit “Note”, substitute “Note 1”.
10 At the end of subsection 393-15(2) of
Schedule 2G
Add:
Note 2: Subdivision B contains rules that affect the extent
to which a withdrawal is a repayment of a farm management
deposit.
11 Subsection 393-30(1) of
Schedule 2G
Omit “section 393-45”, substitute
“sections 393-37 and 393-45”.
12 Subsection 393-30(2A) of
Schedule 2G
Repeal the subsection.
13 Section 393-37 of
Schedule 2G
Repeal the section, substitute:
Partial withdrawal within first 12 months
(1) If:
(a) part of the deposit is withdrawn within the 12 months after the end of
the applicable depositing day (see subsection (7)); and
(b) the withdrawal is not covered by subsection (3), (5) or
(6);
then the amount withdrawn is not, and is taken never to have been, part of
a farm management deposit.
Note: If the withdrawal is covered by subsection (3),
(5) or (6) then the normal rules in sections 393-10, 393-15 and 393-50
apply.
Deposit not to be reduced to less than $1,000 within first 12
months
(2) If the amount of the deposit is reduced to less than $1,000 because of
one or more withdrawals made within the 12 months after the end of the
applicable depositing day that are not withdrawals covered by
subsection (3), (5) or (6), then the deposit is not, and is taken never to
have been, a farm management deposit.
Note: If any of the withdrawals are covered by
subsection (3), (5) or (6), this subsection does not
apply.
Withdrawal in exceptional circumstances
(3) If the whole or a part of the deposit is withdrawn by, or on behalf
of, the owner of the deposit in the following circumstances, the withdrawal is
not a withdrawal to which subsections (1) and (2) apply:
(a) the withdrawal is made in the year of income following the year of
income in which the applicable depositing day occurs;
(b) at the time of the withdrawal, a primary production business of that
owner is carried on wholly or partly in an area that is covered by a declaration
of exceptional circumstances (as referred to in paragraph 8(c) of the Rural
Adjustment Act 1992) that was not in force when the deposit was
made;
(c) at the time of the withdrawal, or within 3 months after the end of the
year of income in which the withdrawal is made, an exceptional circumstances
certificate (within the meaning of subsection 8A(2) of the Farm Household
Support Act 1992) is issued in respect of that owner.
(4) Any subsequent deposit that is made by, or on behalf of, that owner in
the year of income in which the withdrawal referred to in subsection (3) is
made is not, and is taken never to have been, a farm management
deposit.
Withdrawal in the case of death, bankruptcy or loss of primary producer
status
(5) A repayment of a deposit that is required in accordance with
subsection 393-40(3) (which covers death, bankruptcy and loss of primary
producer status) is not a withdrawal to which subsections (1) and (2)
apply.
Transfers to other financial institutions
(6) A transfer of a deposit to another financial institution, in
accordance with a requirement of the agreement concerned, as mentioned in
subsection 393-40(5) is not a withdrawal to which subsections (1) and (2)
apply.
Definition of applicable depositing day
(7) 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).