Part 2 Determining application of Act, paragraph 52ZZZF(1)(f)
5 Purpose—pt 2
This Part sets out decision-making principles with which the Commission must comply in making a determination under the Act, paragraph 52ZZZF(1)(f) that that paragraph applies to an individual and a trust that is a controlled private trust in relation to the individual.
6 Long-term connection with primary production
(1) The Commission must consider whether the individual has had a long-term connection with primary production, in relation to which, for some reason, there has been an interruption in the period of 3 years immediately before the test time, with the result that, at that time, the requirements of the Act, subparagraphs 52ZZZF(1)(e)(i), (ii) and (iii) are not able to be satisfied in relation to the individual.
(2) For subsection (1), an individual is taken to have had a long-term connection with primary production if, for a period of 20 years (whether the period is continuous or is made up of 2 or more periods totalling 20 years), the individual, or the individual’s spouse:
(a) has been involved in the carrying on of 1 or more primary production enterprises; and
(b) has contributed a significant part of his or her labour to the carrying on of those primary production enterprises; and
(c) has derived, either directly or indirectly, a significant part of his or her income from those primary production enterprises.
(3) For the purposes of the application of subsection (2) to an individual at a particular time, a reference to the individual’s spouse is a reference to a person who was the spouse of the individual at that time (whether or not the person is the spouse of the individual at the test time).
(4) For paragraph (2)(c), an individual, or an individual’s spouse, is taken to have derived income indirectly from a primary production enterprise if the income was derived from a company, trust or business partnership that carried on the primary production enterprise.
7 Net income of primary production enterprise
(1) This section applies in relation to the individual if, at any time during the period of 3 years that ended before the test time, the first primary production enterprise was being carried on by an entity, other than:
(a) the individual or the individual’s spouse; or
(b) a company that was a controlled private company in relation to the individual or the individual’s spouse; or
(c) a trust that was a controlled private trust in relation to the individual or the individual’s spouse; or
(d) a business partnership of which the individual, or the individual’s spouse, was a partner.
(2) The Commission must consider:
(a) the amount that is the average of the following amounts in relation to the first primary production enterprise:
(i) the net income (if any) of the enterprise for the last tax year that ended before the test time;
(ii) the net income (if any) of the enterprise for the tax year that preceded the tax year mentioned in subparagraph (i);
(iii) the net income (if any) of the enterprise for the tax year that preceded the tax year mentioned in subparagraph (ii); and
(b) any reductions or adjustments that might have been made to the amounts mentioned in subparagraphs (a) (i), (ii) and (iii) if the entity that had carried on the first primary production enterprise in the tax years mentioned in those subparagraphs had been:
(i) the individual or the individual’s spouse; or
(ii) a company that was a controlled private company in relation to the individual or the individual’s spouse; or
(iii) a trust that was a controlled private trust in relation to the individual or the individual’s spouse; or
(iv) a business partnership of which the individual, or the individual’s spouse, was a partner.
(3) In this section:
first primary production enterprise—see the Act, paragraph 52ZZZF(1)(b).
tax year, in relation to a primary production enterprise, means a tax year of the entity that carried on the enterprise.
test time means the test time in relation to the individual mentioned in the Act, subsection 52ZZZF(1).
Part 3 Determining reduction of value of specified asset—Act, subsection 52ZZZH(2)
8 Purpose—pt 3
This Part sets out decision-making principles with which the Commission must comply in making a determination under the Act, subsection 52ZZZH(2) that the value of a specified asset owned by a company or a trust is to be reduced by the whole or a specified part of a specified liability.
9 Liability arising from genuine arms-length transaction
(1) The Commission must consider whether the specified liability arose from a genuine arm’s length transaction between the company or trust that owns the specified asset and another entity.
(2) A transaction is taken to be a genuine arm’s length transaction for the purposes of subsection (1) if the transaction:
(a) relates to an arrangement that relates to the specific business activities of the company or trust; and
(b) is not with, or does not relate to an arrangement with, a person who is a minor; and
(c) is made under a written agreement that is signed by each party to the agreement and witnessed by an independent person.
(3) Provided the requirements in subsection (2) are met in relation to a transaction, the transaction may be a transaction between the company or trust that owns the specified asset and an individual who is the sole attributable stakeholder of the company or trust.
(4) In this subsection:
minor:
(a) means a person who has not turned 18; and
(b) includes a student; but
(c) does not include a person who:
(i) has turned 16; and
(ii) is engaged on a full-time basis in an occupation, including an office, employment, trade, business, profession, vocation or calling.
student means a person who has turned 16, but has not turned 18, who is enrolled in a full-time course of study at a school, college, university or similar educational institution.
Part 4 Determining certain asset is not controlled by individual—Act, subsection 52ZZZJ(2)
10 Purpose—pt 4
This Part sets out decision-making principles with which the Commission must comply in making a determination under the Act, subsection 52ZZZJ(2) that, for the purposes of the Act, part IIIB, division 11A, subdivision K (Concessional primary production trusts), an asset is taken not to be controlled by an individual if the asset is owned by:
(a) a company that is a controlled private company in relation to the individual; or
(b) a trust that is a controlled private trust in relation to the individual.
11 Is the individual attributable stakeholder?
(1) The Commission must consider whether it is likely that the individual would be considered to be an attributable stakeholder of the company or trust that owns the asset.
(2) If the asset is owned by a trust that is a concessional primary production trust in relation to the individual, the Commission must consider whether it is likely that, but for the fact that the trust is a concessional primary production trust in relation to the individual, the individual would be considered to be an attributable stakeholder of the trust.
(3) In considering the matters mentioned in subsections (1) and (2), the Commission must have regard to the decision-making principles set out in the Veterans’ Entitlements (Attributable Stakeholders and Attribution Percentages) Principles 2025, part 2 (Determination that individual is not attributable stakeholder).
Part 5 Determining adjusted net value of asset controlled by individual—Act, subparagraphs 52ZZZK(2)(a)(ii) and (b)(ii)
12 Purpose—pt 5
This Part sets out decision-making principles with which the Commission must comply in making a determination under the Act, subparagraph 52ZZZK(2)(a)(ii) or (b)(ii) that a specified percentage, lower than 100%, is the adjusted net value of an asset controlled by an individual.
13 Is the individual an attributable stakeholder?
(1) The Commission must consider whether it is likely that the individual would be considered to be an attributable stakeholder of the company or trust that owns the asset.
(2) If the asset is owned by a trust that is a concessional primary production trust in relation to the individual, the Commission must consider whether it is likely that, but for the fact that the trust is a concessional primary production trust in relation to the individual, the individual would be considered to be an attributable stakeholder of the trust.
(3) If the Commission considers that it is likely that the individual would be considered to be an attributable stakeholder of the company or trust that owns the asset, the Commission must consider the percentage that would be likely to be the individual’s asset attribution percentage in relation to the company or trust.
(4) In considering the matters mentioned in subsections (1) and (2), the Commission must have regard to the decision-making principles set out in the Veterans’ Entitlements (Attributable Stakeholders and Attribution Percentages) Principles 2025, part 2 (Determination that individual is not attributable stakeholder).
(5) In considering the matter mentioned in subsection (3), the Commission must have regard to the decision-making principles set out in the Veterans’ Entitlements (Attributable Stakeholders and Attribution Percentages) Principles 2025, part 3 (Determination of asset attribution percentage).
Part 6 Determining percentage of net income of primary production enterprise—Act, subparagraphs 52ZZZL(1)(b)(ii) and (c)(ii)
14 Purpose—pt 6
This Part sets out decision-making principles with which the Commission must comply in making:
(a) a determination under the Act, subparagraph 52ZZZL(1)(b)(ii) that, for a particular tax year, a specified percentage, lower than 100%, of the net income of a primary production enterprise carried on by a company that was a controlled private company in relation to an individual throughout that tax year is to apply in relation to the individual and the enterprise for that tax year; or
(b) a determination under the Act, subparagraph 52ZZZL(1)(c)(ii) that, for a particular tax year, a specified percentage, lower than 100%, of the net income of a primary production enterprise carried on by a trust that was a controlled private trust in relation to an individual throughout that tax year is to apply in relation to the individual and the enterprise for that tax year.
15 Is the individual an attributable stakeholder?
(1) The Commission must consider whether it is likely that the individual would be considered to be an attributable stakeholder of the company or trust that carries on the primary production enterprise.
(2) If the primary production enterprise is carried on by a trust that is a concessional primary production trust in relation to the individual, the Commission must consider whether it is likely that, but for the fact that the trust is a concessional primary production trust in relation to the individual, the individual would be considered to be an attributable stakeholder of the trust.
(3) If the Commission considers that it is likely that the individual would be considered to be an attributable stakeholder of the company or trust that carries on the primary production enterprise, the Commission must consider the percentage that would be likely to be the individual’s income attribution percentage in relation to the company or trust.
(4) In considering the matters mentioned in subsections (1) and (2), the Commission must have regard to the decision-making principles set out in the Veterans’ Entitlements (Attributable Stakeholders and Attribution Percentages) Principles 2025, part 2 (Determination that individual is not attributable stakeholder).
(5) In considering the matter mentioned in subsection (3), the Commission must have regard to the decision-making principles set out in the Veterans’ Entitlements (Attributable Stakeholders and Attribution Percentages) Principles 2025, part 4 (Determination of income attribution percentage).
Section 1 - Veterans’ Entitlements (Primary Production Concession) Principles 2025 - Veterans’ Entitlements (Primary Production Concession) Principles 2025 | Zoe