12When an Australian entity or Australian business is an agribusiness

#### 12 When an Australian entity or Australian business is an agribusiness (1) For the definition of agribusiness in section 4 of the Act, the following table prescribes the circumstances in which an Australian entity or Australian business is an agribusiness. ```html <table cellspacing="0" cellpadding="0" style="width:100%; border-collapse:collapse"><thead><tr><td colspan="3" style="border-top:1.5pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="TableHeading"><span>Australian entities and Australian businesses that are agribusinesses</span></p></td></tr><tr><td style="width:10.08%; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="TableHeading"><span>Item</span></p></td><td style="width:44.96%; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="TableHeading"><span>Column 1</span></p><p class="TableHeading"><span>This kind of Australian entity or Australian business …</span></p></td><td style="width:44.96%; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="TableHeading"><span>Column 2</span></p><p class="TableHeading"><span>is an agribusiness if …</span></p></td></tr></thead><tbody><tr><td style="width:10.08%; border-top:1.5pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>1</span></p></td><td style="width:44.96%; border-top:1.5pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>an Australian entity</span></p></td><td style="width:44.96%; border-top:1.5pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tablea"><span>(a) any one or more of the following entities (the </span><span style="font-weight:bold; font-style:italic">agribusiness entities</span><span>) derive earnings from carrying on a business of the kind mentioned in subsection</span><span> </span><span>(3):</span></p><p class="Tablei"><span>(i) the entity;</span></p><p class="Tablei"><span>(ii) a subsidiary of the entity; and</span></p><p class="Tablea"><span>(b) the amount of those earnings before interest and tax, derived by the agribusiness entities in the most recent financial year for which the financial accounts of the entity have been audited, exceeds 25% of the amount of the total earnings for the entity.</span></p></td></tr><tr><td style="width:10.08%; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>2</span></p></td><td style="width:44.96%; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>an Australian entity</span></p></td><td style="width:44.96%; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tablea"><span>(a) any one or more of the following entities use assets in carrying on a business of the kind mentioned in subsection</span><span> </span><span>(3):</span></p><p class="Tablei"><span>(i) the entity;</span></p><p class="Tablei"><span>(ii) a subsidiary of the entity; and</span></p><p class="Tablea"><span>(b) the value of those assets exceeds 25% of the total asset value for the entity.</span></p></td></tr><tr><td style="width:10.08%; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>3</span></p></td><td style="width:44.96%; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>an Australian business</span></p></td><td style="width:44.96%; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tablea"><span>(a) the business uses assets in carrying on a business of the kind mentioned in subsection</span><span> </span><span>(3); and</span></p><p class="Tablea"><span>(b) the value of those assets exceeds 25% of the value of the total assets of the business.</span></p></td></tr></tbody></table> ``` > Note: See also sections 23 (value of assets of entities or businesses) and 24 (value of assets of entities that prepare consolidated financial statements). Meaning of total earnings (2) The total earnings for the entity is the total of all earnings before interest and tax in that year by the entity and any one or more subsidiaries of the entity. Classes of business (3) The business must be carried on wholly or partly in any of the following classes of the Australian and New Zealand Standard Industrial Classification Codes: (a) any of the classes in Division A (agriculture, forestry and fishing); (b) any of the classes in Subdivision 11 of Division C (food product manufacturing), other than any of the following: (i) class 1113 (cured meat and smallgoods manufacturing); (ii) class 1132 (ice cream manufacturing); (iii) class 1162 (cereal, pasta and baking mix manufacturing); (iv) a class in group 117 (bakery product manufacturing); (v) class 1182 (confectionery manufacturing); (vi) a class in group 119 (other food product manufacturing). Mixed earnings and mixed‑use assets (4) For the purposes of this section: (a) earnings that are derived from carrying on a business that is not wholly in a class mentioned in subsection (3); or (b) the value of assets that are used in carrying on a business that is not wholly in a class mentioned in subsection (3); may be apportioned, on the basis of information available to a foreign person taking an action in relation to the business, between the part of the business that is in the class and the other parts of the business.