Commonwealth Consolidated Acts

INCOME TAX ASSESSMENT ACT 1997 - SECT 385.95

  (1)   You can elect:

ï‚·   to spread the profit on the disposal or death over the income year of the disposal or death and the next 4 income years ( election to spread ); or

ï‚·   to defer including the profit in your assessable income, if you will use the proceeds of the disposal or death mainly to replace the live stock ( election to defer ).

  (2)   If you make an election to defer, the profit is "used" over the next 5 income years:

ï‚·   by reducing the amount for which you are taken to have bought replacement stock (as a result, your tax profit on the disposal of the replacement stock is increased); and

ï‚·   by including in your assessable income amounts for replacement stock that you breed.

Any unused part of the profit is included in your assessable income for the fifth income year.