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INCOME TAX ASSESSMENT ACT 1997 - SECT 392.90 Work out your averaging component

INCOME TAX ASSESSMENT ACT 1997 - SECT 392.90

Work out your averaging component

  (1)   Work out your averaging component for the * current year using the following table, taking into account:

  (a)   your * taxable primary production income for the current year; and

  (b)   your * taxable non - primary production income for the current year.

 

Averaging component

 

If * taxable

The averaging component equals:


Item

non - primary production income:

for * taxable primary production income > 0

for * taxable primary production income = 0

1

is nil

* Basic taxable income

Nil

2

is more than nil but does not exceed $5,000

* Basic taxable income

* Basic taxable income

3

exceeds $5,000 but does not exceed $10,000

* Taxable primary production income plus * non - primary production shade - out amount

* Non - primary production shade - out amount

4

is $10,000 or more

* Taxable primary production income

Nil

Note:   Subsections   (2) and (3) explain how to work out your non - primary production shade - out amount if your taxable non - primary production income is between $5,000 and $10,000.

Non - primary production shade - out amount if your taxable primary production income is more than nil

  (2)   If your * taxable primary production income is more than nil, your non - primary production shade - out amount is the amount worked out using the formula:

Start formula $10,000 minus Taxable non-PP income end formula

Non - primary production shade - out amount if your taxable primary production income is nil

  (3)   If your * taxable primary production income is nil, your non - primary production shade - out amount is the amount worked out using the formula:

Start formula $10,000 minus Taxable non-PP income minus open bracket PP deductions minus Assessable PP income close bracket end formula

However, if that amount is less than nil, your non - primary production shade - out amount is nil.

  (4)   In this section:

"Assessable PP income" means your * assessable primary production income for the * current year.

"PP deductions" means your * primary production deductions for the * current year.

"Taxable non-PP income" your * taxable non - primary production income for the * current year.

Table of sections

392 - 95   You are treated as if you had not carried on business before

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