Income Tax Assessment Act 1936
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Hide history noteSubject to Subdivision 272-J , a unit trust is a wholesale widely held trust at a particular time (the test time ) if:
(a) it is an unlisted widely held trust at the test time; and
(b) it is not an unlisted very widely held trust at the test time; and
(c) at least 75% of its units are held at the test time by one or more qualifying holders (see subsection (2)); and
(d) at the test time, all of its units carry the same rights; and
(e) if at the test time its units are redeemable, they are redeemable for a price determined on the basis of its net asset value, according to Australian accounting principles; and
(f) the amount subscribed for units in the trust by each person to whom units have been issued was at least $500,000; and
(g) at the test time, the unit trust engages only in qualifying activities (see subsection (3)).
Qualifying holder
272-125(2)
Each of the following is a qualifying holder :
(a) a listed widely held trust;
(b) an unlisted very widely held trust;
(c) a life assurance company;
(d) (Repealed by No 101 of 2004)
(e) a fund that is a complying approved deposit fund in relation to the year of income in which the test time occurs;
(f) a fund that is a complying superannuation fund in relation to the year of income in which the test time occurs;
(g) a trust that is a pooled superannuation trust in relation to the year of income in which the test time occurs.
Qualifying activity
272-125(3)
A qualifying activity is an activity that:
(a) is an investment or business activity; and
(b) is conducted in accordance with the trust instrument or deed, and any prospectus, of the trust; and
(c) is conducted at arm ' s length.
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