Sch 1BValuation factors

Schedule 1B—Valuation factors

(regulations 307‑205.01 and 307‑205.02)

1 Income stream valuation factors

(1) For subregulation 307‑205.01(2), the applicable factor is the factor given in Table 1 at the age which is the greater of: (a) the minimum age at which a retirement benefit can be taken without requiring the consent of the employer; and (b) the member’s actual age as at his or her last birthday before 1 July 2007. (2) For subregulation 307‑205.02(2), if the superannuation income stream in respect of the interest is payable for the life of the member, the applicable factor is the factor given in Table 1 for the age of the member at his or her last birthday before the day after the date on which the superannuation income stream is to be valued. (3) For subregulation 307‑205.02(2), if the superannuation income stream in respect of the interest is payable for a fixed term, the applicable factor is the factor given in Table 2 for the number of complete years remaining in the term of the superannuation income stream on the day preceding the date on which the superannuation income stream is to be valued.

Table 1

Part 1 Statements

Part 1—Statements

1 Authorised deposit‑taking institution

The FMD provider issuing this application form is an authorised deposit‑taking institution for the purposes of the Banking Act 1959.

2 Financial Claims Scheme

The account holder may be entitled to payment under the Financial Claims Scheme. Payments under the Financial Claims Scheme are subject to a limit for each depositor in respect of total deposits held by that depositor at a locally incorporated authorised deposit‑taking institution. For further information contact the Australian Prudential Regulation Authority or visit www.fcs.gov.au.

Part 2 Required statements

Part 2—Required statements

1 Purpose of farm management deposits scheme

The farm management deposits scheme is designed to allow individuals carrying on a primary production business in Australia to shift before‑tax income from years when they need it least to years when it is most needed. The scheme helps those individuals to manage their exposure to adverse economic events and seasonal fluctuations.

Eligibility criteria apply to individuals carrying on a primary production business in Australia under the scheme.

Note: Primary production business and carrying on a primary production business are explained in subsection 995‑1(1) of the Act.

2 Tax consequences of farm management deposits

The scheme allows individuals carrying on a primary production business in Australia to deduct the amount of any farm management deposit they own from their assessable income for the income year in which the deposit is made. However, the amount of the deductions cannot exceed the owner’s taxable primary production income for the income year.