Instructions for completing the questions at Division 6C amounts in the tax return.
Main category of eligible investment business
Select the main category of eligible investment business from the category list.
See, section 102M of the ITAA 1936 for the meaning of eligible investment business.
Choose the most appropriate category from the list in section 102M.
Total amount of eligible investment business income
Enter the total amount of eligible investment business income.
Application of the safe harbour rules
Was the CCIV sub-fund, as a deemed unit trust, a public unit trust as defined in section 102P of the ITAA 1936?
The definition of public unit trust in section 102P has been amended for income years starting on or after 1 July 2016. A trust is not a public unit trust merely because 20% or more of the interests in the trust are held by complying superannuation entities or tax-exempt entities that are entitled to a refund of franking credits. From income years starting on or after 1 July 2016, some AMITs including attribution CCIV sub-fund trusts, are no longer public unit trusts.
The following 2 safe harbour questions need to be considered:
- if the CCIV sub-fund trust meets the definition of public unit trust in section 102P – in considering whether the CCIV sub-fund trust is not a public trading trust
- if the CCIV sub-fund trust does not meet the definition of public unit trust in section 102P – in considering whether the CCIV sub-fund trust meets the MIT criteria to not be a trading trust.
If the CCIV sub-fund is not a public unit trust as defined in section 102P, the trustee still needs to consider the safe harbour questions.
These questions are relevant to Managed Investment Trust (MIT) criteria (even where the trust is not a public trading trust).
Did the trust rely on the rental safe harbour rule in subsection 102MB(2) of the ITAA 1936?
Subsection 102MB(2) provides a 25% safe harbour allowance for non-rental, non-trading income from investments in land. This allowance should be considered on a CCIV sub-fund basis.
If the CCIV sub-fund trust relied on this safe harbour answer Yes. Otherwise answer No.
Did the trust rely on the 2% non-eligible investment business safe harbour in section 102MC of the ITAA 1936?
Section 102MC provides a 2% safe harbour allowance at the whole of trust level for non-trading income to reduce the scope for inadvertent minor breaches of the Division 6C eligible investment business rules. This allowance should be considered on a CCIV sub-fund basis.
If the CCIV sub-fund trust relied on this safe harbour answer Yes. Otherwise answer No.
If you answered Yes, select the percentage of income from activities other than an eligible investment business:
- 0% to 0.50%
- over 0.50% up to 1.00%
- over 1.00% up to 1.50%
- over 1.50% up to 2.00%.
Continue to: Assessable income