Policy | CLIK

10.3.16 Primary Production Private Trust & Company Issues - From 01/01/2002

This section contains information on the assessment and treatment of the [glossary:assets:296] and [glossary:income:31] from [glossary:primary production:265] private trusts and private companies from 1 January 2002. It also contains information on the concession available to [glossary:attributable stakeholders:615] of primary production trusts who wish to retire from the primary production business (trust) while retaining a right of veto in order to prevent the sale or break-up of the primary production assets.

Recognised Liabilities of a Controlled Private Company or Trust

Last amended: 8 September 2011

Recognised liability – loan and debt

Loans to or debts owed by an [glossary:entity:168] will be recognised as a genuine liability of the entity and therefore allowed as a genuine deduction from the gross asset value of the borrowing entity if:

Example of Primary Production Concession & other Related Issues

Incidental benefits allowed

VEA →

Concessional primary production trusts - allowable incidental fringe benefits

Section 52ZZZF(4) VEA

Percentage Payment Splits - Defined Benefit Income Streams and Military Invalidity Pensions Income Streams

Calculating the asset value

Defined benefit income streams and Military Invalidity Pensions Income Streams are not included in a person's assessable assets.

Income test assessment

All required information for the primary and secondary Family Law Affected (FLA) income streams is calculated by the income stream provider.

The Source Test

The source test for a private trust and company

The [glossary:source test:186] in relation to a [glossary:controlled private trust:86] and a [glossary:controlled private company:72] is to be applied where:

an individual transfers assets to a structure after 7.30pm 9 May 2000, and
More →

Notification Obligations and Date of Effect

Last amended: 09 September 2013

Earnings changes are notifiable events

Section 54 VEA provides that a pension recipient may be given a notice that requires them to inform the Department of 'a specified event or change in circumstances' that may affect their payment.

Summary of Assessable Assets of Sole Traders and Partnerships

VEA →

Section 52C VEA

Section 52CA VEA

Base Amount Payment Splits - Defined Benefit Income Streams and Military Invalidity Pensions Income Streams

Calculating the asset value

Defined Benefit Income Streams and Military Invalidity Pensions Income Streams are not included in a person's assessable assets.

Income test assessment

This table shows how to calculate the assessable income from the income stream.

Step	Action
1	Any income paid between the operative time and the date of the first splittable payment is an exempt lump sum.

10.4.3 Assessment of Superannuation Benefits

This section contains information on the [glossary:income:31] and [glossary:assets:296] testing, in the [glossary:accumulation phase:138], of income from withdrawals of [glossary:superannuation benefits:455].