Key points to remember:
A Trust or Partnership that runs a Primary Production (PP) business does NOT receive Tax Averaging. Only individuals receiving a Trust Distribution or a Partnership Distribution that includes PP income may receive PP Averaging "Complimentary Tax" (additional tax) or a PP Averaging "Rebate" (reduced tax) as an averaging adjustment for the year.
For PP income distributed by a Trust or a Partnership to an individual, the individual must have:
"Tax Averaging" set to YES, AND
An amount entered in at least one prior year for "Basic Taxable Income", AND
An amount entered in "Distributed Primary Production Income" (the cell that appears just above "Estimated Taxable Income AFTER Tax Planning" which only appears once you click YES to the question at the top of the column "Tax Averaging").
If an individual earns PP income in their own name, they simply need to:
Record it in "Primary Production Income",
Set "Tax Averaging" to YES, and
Enter an amount in at least one prior year for "Basic Taxable Income".