Income Tax Assessment Act 1936
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Hide history noteBasic meaning
272-105(1)
A trust is a widely held unit trust if:
(a) it is a fixed trust that is a unit trust; and
(b) it is not closely held (see subsection (2)).
A trust is also a widely held unit trust if it is an AMIT (including an AMIT arising from the operation of section 276-20 (Trust with classes of interests - each class treated as separate AMIT)).
Closely held - income test
272-105(2)
A trust is closely held if:
(a) an individual has, or up to 20 individuals have between them; or
(b) no individual has, or no individuals have between them;
directly or indirectly and for their own benefit, fixed entitlements to a 75% or greater share of the income of the trust.
Closely held - capital test
272-105(2A)
A trust is also closely held if:
(a) an individual has, or up to 20 individuals have between them; or
(b) no individual has, or no individuals have between them;
directly or indirectly and for their own benefit, fixed entitlements to a 75% or greater share of the capital of the trust.
Single individual
272-105(3)
For the purposes of subsection (2) or (2A), all of the following are taken to be a single individual:
(a) an individual, whether or not the individual holds units in the unit trust; and
(b) the individual ' s relatives; and
(c) in relation to any units in respect of which other individuals are nominees of the individual or of the individual ' s relatives - those other individuals.
Exception
272-105(4)
A unit trust is not a widely held unit trust if, because of:
(a) any provision in the trust instrument, or in any contract, agreement or instrument:
(i) authorising the variation or abrogation of rights attaching to any of the units; or
(ii) relating to the conversion, cancellation, extinguishment or redemption of any of the units; or
(b) any contract, agreement, arrangement, option or instrument under which a person has power to acquire any of the units; or
(c) any power, authority or discretion in a person in relation to the rights attaching to any of the units;
it is reasonable to conclude that the rights attaching to any of the units are capable of being varied or abrogated in such a way (even if they are not in fact varied or abrogated in that way) that directly or indirectly the requirement in paragraph (1)(b) would not be satisfied.
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