The FIF measures apply to you for all or part of an income year in which you are an Australian resident. [section 485]
Even though you are an Australian resident you are not taxed under the FIF measures for an interest in a foreign trust that you dispose of during an income year - that is, before 30 June each income year. See Interests in a FIF or FLP subject to the FIF measures in chapter 2. If you dispose of an interest in a non-resident trust, other areas of the ITAA 1936 may apply. [section 485]
Trusts to which the FIF measures apply
The FIF measures will apply to you if you are a beneficiary of or have an interest in a foreign or non-resident trust.
A trust is a foreign trust if it is not:
- an Australian trust [sections 481 and 473]
- a public trading trust which is also a resident unit trust [sections 102G, 102H, 102J, 473 and 481]
- a corporate unit trust which is also a resident unit trust [sections 102J, 102H, 473 and 481]
- an Australian superannuation fund (Part 6-5 of the ITAA 1997)
- a complying approved deposit fund (Part 6-5 of the ITAA 1997)
- a pooled superannuation trust. (Part 6-5 of the ITAA 1997)
A trust is an Australian trust if the trustee was a resident, or the central management and control of the trust was in Australia, for 12 months preceding the end of your income year. [sections 473, 481 and 485]