Commonwealth Consolidated Acts

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Effect of certain liabilities on value of assets used in primary production

             (1)  For the purposes of working out the value of a person's assets under this Act, if:

                     (a)  the person is:

                              (i)  a primary producer; or

                             (ii)  a family member of a primary producer; and

                     (b)  the person has assets (including real property) that are, in the Secretary's opinion, used for the purposes of carrying on that primary production; and

                     (c)  the person also has liabilities that are, in the Secretary's opinion, related to the carrying on of the primary production;


                     (d)  section 1121 does not apply in relation to the assets referred to in paragraph (b); and

                     (e)  those assets are taken to be a single asset (in this section called the primary production asset ); and

                      (f)  the value of that single asset is worked out under subsection (2).

Note:          For family member see subsection 23(1).

             (2)  The value of a person's primary production asset is worked out in the following way:

Method statement

Step 1.    Add together the value of the assets referred to in paragraph (1)(b): the result is called the unencumbered value .

Step 2.    Add together the value of the liabilities referred to in paragraph (1)(c): the result is called the total liability .

Step 3.    Take the total liability away from the unencumbered value: the result is the value of the person's primary production asset.

             (3)  If the result under Step 3 of the Method statement is less than nil, the value of the primary production asset is taken to be nil.

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