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INCOME TAX ASSESSMENT ACT 1997 - SECT 392.95 You are treated as if you had not carried on business before

INCOME TAX ASSESSMENT ACT 1997 - SECT 392.95

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

Choosing to discontinue and restart averaging

  (1)   You can choose that this Division not affect your * income tax liability for an income year (the reduction year ) if you show the Commissioner that, because of retirement from your occupation or from any other cause, your * basic taxable income for the reduction year is permanently reduced during that year to less than two thirds of your * average income for that year.

  (1A)   You must make the choice by notifying the Commissioner in writing by the day you lodge your * income tax return for the reduction year. However, the Commissioner can allow you to make it later.

  (1B)   If you make a choice under subsection   (1), this Division applies to assessments for later income years as if you had never carried on a * primary production business before the reduction year.

Working out the extent of the permanent reduction

  (2)   In working out the extent of the permanent reduction, you must work out your * average income for the reduction year on the basis that your * basic assessable income for an income year taken into account in working out your average income did not include any assessable income from sources from which you do not usually receive assessable income.

  (3)   In working out the extent of the permanent reduction, disregard a reduction in * basic taxable income to the extent that it results from a change of assets from which assessable income was * derived into assets from which you derive income that is not assessable income.

Table of Subdivisions

  Guide to Division   393

393 - A   Tax consequences of farm management deposits

393 - B   Meaning of farm management deposit and owner

393 - C   Special rules relating to financial claims scheme for account - holders with insolvent ADIs

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