Social Security (Primary Production Concession) Principles 2017 (Cth)

Social Security (Primary Production Concession) Principles 2017

I, FINN PRATT, Secretary of the Department of Social Services, formulate these Principles under section 1209E of the Social Security Act 1991.

Dated 8 March 2017

Finn Pratt Secretary of the Department of Social Services

Contents

Page Part 1 Preliminary 1 Name of Principles 2 Commencement 3 Definitions 4 Purpose of Determination 3 Part 2 Determination of application of paragraph 1208U (1) (f) of Act 5 Purpose of Part 2 6 Long-term connection with primary production 7 Net income of primary production enterprise Part 3 Determination of reduction of value of specified asset 8 Purpose of Part 3 9 Liability arising from genuine arms-length transaction

Part 4 Determination that asset is not controlled by individual 10 Purpose of Part 4 11 Is the individual an attributable stakeholder? Part 5 Determination of adjusted net value of asset controlled by individual 12 Purpose of Part 5 13 Is the individual an attributable stakeholder? Part 6 Determination of percentage of net income of primary production enterprise for tax year 14 Purpose of Part 6 15 Is the individual an attributable stakeholder?

Part 1 Preliminary

1 Name of Principles These Principles are the Social Security (Primary Production Concession) Principles 2017. 2 Commencement These Principles commence on 1 April 2017. 3 Definitions In these Principles, unless the contrary intention appears: Act means the Social Security Act 1991. company means a controlled private company. trust means a controlled private trust. 4 Purpose of Determination These Principles set out decision-making principles with which the Secretary must comply in making the following determinations: (a) a determination under paragraph 1208U (1) (f) of the Act that that paragraph applies to an individual and a trust that is a controlled private trust in relation to the individual; (b) a determination under subsection 1208W (2) of the Act that the value of a specified asset owned by a company or a trust is to be reduced by the whole or a specified part of a specified liability; (c) a determination under subsection 1208Y (2) of the Act that, for the purposes of Division 11 of Part 3.18 of the Act, an asset that is owned by a company that is a controlled private company in relation to an individual, or a trust that is a controlled private trust in relation to an individual, is taken not to be controlled by the individual; (d) a determination under subparagraph 1208Z (2) (a) (ii) or (b) (ii) of the Act that a specified percentage, lower than 100%, is the adjusted net value of an asset controlled by an individual; (e) a determination under subparagraph 1209 (1) (b) (ii) of the Act that, for a particular tax year, a specified percentage, lower than 100%, of the net income of a primary production enterprise carried on by a company that was a controlled private company in relation to an individual throughout that tax year is to apply in relation to the individual and the enterprise for that tax year; (f) a determination under subparagraph 1209 (1) (c) (ii) of the Act that, for a particular tax year, a specified percentage, lower than 100%, of the net income of a primary production enterprise carried on by a trust that was a controlled private trust in relation to an individual throughout that tax year is to apply in relation to the individual and the enterprise for that tax year.