35Meaning of farm assets and non‑farm assets

35 Meaning of farm assets and non‑farm assets

(1) A farm asset is any asset that is used or held wholly or mainly for the purposes of a farm enterprise, but does not include the following: (a) cash; (b) money on deposit with an authorised deposit‑taking institution within the meaning of the Banking Act 1959; (c) a farm management deposit within the meaning of the Income Tax Assessment Act 1997; (d) an asset of a kind prescribed by the Minister’s rules. (2) Without limiting subsection (1), each of the following is a farm asset: (a) a right or interest in land used wholly or mainly for the purposes of a farm enterprise; (b) a right or interest in livestock, crop, plant or equipment that: (i) is produce of a farm enterprise; or (ii) is used wholly or mainly for the purposes of a farm enterprise; other than any livestock, crop, plant or equipment leased out by the farm enterprise; (c) a water entitlement right that is used or held wholly or mainly for the purposes of a farm enterprise; (d) so much of a loan to which subsection (2A) applies as: (i) is used to purchase a thing covered by subsection (1) or paragraph (a), (b) or (c) of this subsection; and (ii) remains unpaid. (2A) This subsection applies to a loan at a particular time if: (a) it was made by a beneficiary of a trust to the trustee of the trust, or by a shareholder of a company to the company; and (b) the outstanding amount of the principal of the loan exceeds, at that time, the total value of all the financial investments: (i) the trustee has in the capacity of trustee; or (ii) the company has. (3) A non‑farm asset is an asset other than a farm asset.

Note 1: A farm management deposit (within the meaning of the Income Tax Assessment Act 1997) is an example of a non‑farm asset.

Note 2: The value of the person’s principal home (if any) is not counted for the purposes of this Subdivision because of Division 1 of Part 3.12 of the Social Security Act.