Superannuation Legislation Amendment Act (No. 2) 1999 (96 of 1999)

Schedule 2   Non-arm's length trust distributions etc. to superannuation and similar funds

Income Tax Assessment Act 1936

4   Transitional - income of unit holders

(1) Income derived during the period from the commencement time until the end of 2 July 1998 by the entity in the capacity of holder of a unit in a trust estate is special income of the entity for the purposes of Part IX of the Income Tax Assessment Act 1936 if, and only if:

(a) the entity acquired the unit under an arrangement, or the income was derived under an arrangement, some or all of the parties to which were not dealing with each other at arm’s length in relation to the arrangement; and

(b) the amount of the income is greater than might have been expected to have been derived by the entity if those parties had been dealing with each other at arm’s length in relation to the arrangement.

(2) In subitem (1), arrangement has the meaning given by subsection 273(8) as inserted in the Income Tax Assessment Act 1936 by item 2.