Income Tax Assessment Act 1936

PART III - LIABILITY TO TAXATION  

Division 6C - Income of certain public trading trusts  

SECTION 102MA   ARRANGEMENTS NOT COVERED  

102MA(1)    
For the purposes of paragraph (c) of the definition of eligible investment business in section 102M , the excepted arrangements are those specified in this section.

Note:

This section does not affect an arrangement that satisfies paragraph (a) or (b) of that definition.

Leasing or property arrangement

102MA(2)    
A right or obligation arising under:

(a) (Repealed by No 12 of 2012)

(b) an arrangement to which Division 240 of the Income Tax Assessment Act 1997 (about arrangements treated as a sale and loan) applies; or

(ba) an arrangement to which Division 242 (about leases of luxury cars) of the Income Tax Assessment Act 1997 applies; or

(c) a financial arrangement in the form of a loan that is taken to exist by subsection 250-155(1) of the Income Tax Assessment Act 1997 ; or

(d) an arrangement that, in substance or effect, depends on the use of a specific asset that is:

(i) real property; or

(ii) goods or a personal chattel (other than money or a money equivalent); or

(iii) intellectual property;

and gives a right to control the use of the asset; or

(e) an arrangement that is a licence to use:

(i) real property; or

(ii) goods or a personal chattel (other than money or a money equivalent); or

(iii) intellectual property.

Interest in partnership or trust estate

102MA(3)    
A right carried by an interest in a partnership or a trust estate, or an obligation that corresponds to such a right, if:

(a) there is only one class of interest in the partnership or trust estate; or

(b) the interest is an equity interest in the partnership or trust estate; or

(c) for a right or obligation relating to a trust estate - the trust estate is managed by a funds manager or custodian, or a responsible entity (as defined in the Corporations Act 2001 ) of a registered scheme (as so defined).

General insurance policies

102MA(4)    
A right or obligation under a general insurance policy.

Guarantees and indemnities

102MA(5)    
A right or obligation under a guarantee or indemnity unless:

(a) the financial arrangement is one where:

(i) its value changes in response to changes in a specified variable or variables (such as an interest rate, foreign exchange rate, credit rating, index or commodity or financial instrument price); and

(ii) there is no requirement for a net investment, or there is such a requirement but the net investment is smaller than would be required for other types of financial arrangement that would be expected to have a similar response to changes in market factors; or

(b) the guarantee or indemnity is given or entered into in relation to a financial arrangement.

Superannuation and pension income

102MA(6)    
A right to receive, or an obligation to provide, a financial benefit (as defined in the Income Tax Assessment Act 1997 ) if the right or obligation arises from a person ' s membership of a superannuation or pension scheme.

Retirement village arrangements

102MA(7)    
A right or obligation arising under:

(a) a contract that gives rise to a right to occupy residential premises in a retirement village (as defined in the A New Tax System (Goods and Services Tax) Act 1999 ); or

(b) a contract under which a resident of such a retirement village is provided with general or personal services in the retirement village.