Income Tax Assessment Act 1936

PART III - LIABILITY TO TAXATION  

Division 6C - Income of certain public trading trusts  

SECTION 102MB   INVESTING IN LAND  

Moveable property

102MB(1)    
For the purposes of this Division, investments in moveable property, being property that is:

(a) incidental to and relevant to the renting of land; and

(b) customarily supplied or provided in connection with the renting of land; and

(c) ancillary to the ownership and use of land;

are taken to be investments in land.

Safe harbour rule

102MB(2)    
For the purposes of this Division, an entity ' s investments in land are taken to be for the purpose, or primarily for the purpose, of deriving rent during a year of income if:

(a) each of those investments is for purposes (other than the purpose of trading) that include a purpose of deriving rent; and

(b) at least 75% of the gross revenue from those investments for the year of income consists of rent (except excluded rent); and

(c) none of the remaining gross revenue from those investments for the year of income is:

(i) excluded rent; or

(ii) from the carrying on of a business that is not incidental and relevant to the renting of the land.

102MB(3)    
In working out the gross revenue referred to in paragraph (2)(b), payments for the provision of services that:

(a) are incidental to and relevant to the renting of land; and

(b) are ancillary to the ownership and use of the land;

are taken to be rent derived from the land.

Example:

Payments as reimbursement for expenses incurred by the lessor in providing security services for a shopping centre would be covered by this subsection.

102MB(4)    
In working out the gross revenue referred to in subsection (2), disregard any capital gains and capital losses from a CGT event arising from a disposal or other realisation of ownership of land.

Meaning of entity

102MB(5)    
In this section:

entity
has the same meaning as in the Income Tax Assessment Act 1997 .