Income Tax (Farm Management Deposits) Amendment Regulations 2000 (No. 1) (Cth)

Income Tax (Farm Management Deposits) Amendment Regulations 2000 (No. 1)

Statutory Rules 2000 No. 230

I, WILLIAM PATRICK DEANE, Governor-General of the Commonwealth of Australia, acting with the advice of the Federal Executive Council, make the following Regulations under theIncome Tax Assessment Act 1936.

Dated 10 August 2000

WILLIAM DEANE

Governor-General

By His Excellency’s Command

C. R. KEMP

Assistant Treasurer

Income Tax (Farm Management Deposits) Amendment Regulations 2000 (No. 1)1

Statutory Rules 2000 No. 2302

made under the

Income Tax Assessment Act 1936

   

Contents

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1Name of Regulations

 These Regulations are the Income Tax (Farm Management Deposits) Amendment Regulations 2000 (No. 1).

2Commencement

 These Regulations commence on 1 September 2000.

3Amendment of Income Tax (Farm Management Deposits) Regulations 1998

Schedule 1 amends the Income Tax (Farm Management Deposits) Regulations 1998.

Schedule 1Amendment

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(regulation 3)

[1]Schedule 2, the 3 paragraphs under the heading Tax consequences of farm management deposits

substitute

• The scheme allows primary producers to deduct the amount of any farm management deposit they own from their assessable income for the income year in which the deposit is made.

    However, the amount of the deductions cannot exceed the owner’s taxable primary production income for the year.

• Under the Pay As You Go system, owners may reduce their instalment income for an instalment period by the amount of farm management deposits made during that period.

   The reduction is limited to the amount that the owners can reasonably expect to deduct for the deposit for the income year in which the deposit is made. However, the instalment income for the period cannot be reduced below nil.

• When an owner withdraws funds from a farm management deposit in an instalment period, the instalment income of the period will include the amount of the withdrawal.

   But the owner’s instalment income will only include so much of the withdrawal as will be included in the owner’s assessable income for the income year in which the withdrawal is made. If neither the owner’s tax file number nor Australian Business Number have been quoted to the financial institution that holds the deposit, the amount withdrawn will also be subject to withholding at a rate of 48.5%.

Notes

1. These Regulations amend Statutory Rules 1998 No. 325.

2. Made by the Governor-General on 10 August 2000, and notified in the Commonwealth of Australia Gazette on 17 August 2000.