Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) For the purposes of working out the value of a person's assets under this Act, if:
(a) the person is:
(i) a primary producer; or
(ii) a family member of a primary producer; and
(b) the person has assets (including real property) that are, in the Secretary's opinion, used for the purposes of carrying on that primary production; and
(c) the person also has liabilities that are, in the Secretary's opinion, related to the carrying on of the primary production;
then:
(d) section 1121 does not apply in relation to the assets referred to in paragraph (b); and
(e) those assets are taken to be a single asset (in this section called the primary production asset ); and
(f) the value of that single asset is worked out under subsection (2).
Note: For family member see subsection 23(1).
(2) The value of a person's primary production asset is worked out in the following way:
Method statement
Step 1. Add together the value of the assets referred to in paragraph (1)(b): the result is called the unencumbered value .
Step 2. Add together the value of the liabilities referred to in paragraph (1)(c): the result is called the total liability .
Step 3. Take the total liability away from the unencumbered value: the result is the value of the person's primary production asset.
(3) If the result under Step 3 of the Method statement is less than nil, the value of the primary production asset is taken to be nil.