VEA ? [2]
The provisions for the Primary Production Concession relate specifically to controlled primary production trusts. Primary producers who meet certain income and asset requirements will be allowed to retain a limited appointorship role in the primary production trust, and not have the primary production assets or income attributed to them only if:
This concession allows a primary producer, such as a farmer, to retire and hand control of the primary production assets and income to their successor while retaining a right of veto in case of the proposed sale or break-up of those assets.
VEA ? [4]
All of the following sets out the criteria that must be satisfied if an attributable stakeholder of a controlled primary production trust wishes to qualify for this concession:
is less than the primary production attribution threshold [3],
Value of entity assets
Section 52ZZZI [8] VEA
Net value of assets
Section 52ZZZH [8] VEA
Adjusted net value of assets
Section 52ZZZK [8] VEA
When asset is controlled by an individual
Section 52ZZZJ [8] VEA
Concessional primary production trusts
Section 52ZZZF(6) [8] VEA
Adjusted net primary production income
Section 52ZZZL [8] VEA
Net income of primary production enterprise
Section 52ZZZM [8] VEA
Permissible reductions of income from carrying on a primary production enterprise
Section 52ZZZO [8] VEA
Concessional primary production trusts –definition of group
Section 52ZZZF(7) [8] VEA
Family Assistance Guide
http://www.fahcsia.gov.au/guides_acts/fag/faguide-3/faguide-3.1/faguide-3.1.1/faguide-3.1.1.20.html [11]
Most private trusts have a person/s in the position of appointor, who have the power to:
Primary production enterprise means a business in Australia that consists of primary production [3].
For a primary production trust arrangement to qualify for the primary production concession, more than 70% of the net value of the asset [3] of the trust (excluding the net value of the principal home [3] of the farmer if it is owned by the trust and on the primary production land) must relate to assets used wholly or principally for the purpose of carrying on a primary production enterprise.
Primary production enterprise means a business in Australia that consists of primary production [3].
For a primary production trust arrangement to qualify for the primary production concession, more than 70% of the net value of the asset [3] of the trust (excluding the net value of the principal home [3] of the farmer if it is owned by the trust and on the primary production land) must relate to assets used wholly or principally for the purpose of carrying on a primary production enterprise.
According to section 52ZZZK of the VEA, for the purposes of subdivision K, the adjusted net value of an asset that is owned by:
a lower percentage if the Commission determines in writing otherwise, or
a business partnership—the individual's share of the net value of the asset.
The Commission must comply with any relevant decision-making principles.
According to section 52ZZZL of the VEA, the adjusted net primary production income within subdivision K for a particular tax year is the sum of, where a primary production enterprise is being carried on by:
100% of the net income of that primary production enterprise, or
a lower percentage if the Commission determines otherwise,
a business partnership of which the individual was a partner throughout that tax year:
The Commission must comply with any relevant decision-making principles.
Primary production enterprise means a business in Australia that consists of primary production [3].
For a primary production trust arrangement to qualify for the primary production concession, more than 70% of the net value of the asset [3] of the trust (excluding the net value of the principal home [3] of the farmer if it is owned by the trust and on the primary production land) must relate to assets used wholly or principally for the purpose of carrying on a primary production enterprise.
Trustee has two meanings depending on the context, (i) and (ii).
(i) a person who looks after someone else's affairs
According to section 202 of the VEA [13], a trustee is a person appointed by the Commission to administer the financial affairs of a pensioner who may be incapable of managing their own affairs for reasons such as:
These criteria include circumstances where a pensioner has a psychiatric disorder or a mental illness as a result of alcohol or drug addiction.
A trustee can be appointed, with or without the consent of the pensioner and once appointed, a trustee has full control of the pension payment.
(ii) a person responsible for administration of a trust
According to section 52ZO of the VEA [13], trustee has the same meaning as in the Income Tax Assessment Act 1997 [14].
A reference in section 52ZZH of the VEA [13], to a group in relation to an individual is a reference to:
Links
[1] https://clik.dva.gov.au/user/login?destination=node/16560%23comment-form
[2] https://clik.dva.gov.au/book/export/html/16560#tgt-cspol_part10_ftn523
[3] https://clik.dva.gov.au/%23
[4] https://clik.dva.gov.au/book/export/html/16560#tgt-cspol_part10_ftn524
[5] https://clik.dva.gov.au/book/export/html/16560#tgt-cspol_part10_ftn525
[6] clikpopup://DEF/Eligible Descendant
[7] clikpopup://DEF/Trustee
[8] https://clik.dva.gov.au/service-eligibility-assistant-updates/all-determinations-order-date-signed-oldest-most-recent/determinations-under-vea
[9] https://clik.dva.gov.au/book/export/html/16560#ref-cspol_part10_ftn523
[10] https://clik.dva.gov.au/book/export/html/16560#ref-cspol_part10_ftn524
[11] http://www.fahcsia.gov.au/guides_acts/fag/faguide-3/faguide-3.1/faguide-3.1.1/faguide-3.1.1.20.html
[12] https://clik.dva.gov.au/book/export/html/16560#ref-cspol_part10_ftn525
[13] http://clik.dva.gov.au/legislation-library
[14] http://www.comlaw.gov.au/comlaw/management.nsf/lookupindexpagesbyid/IP200401745?OpenDocument