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
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
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.
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].