Taxation Administration Act 1953

SCHEDULE 1 - COLLECTION AND RECOVERY OF INCOME TAX AND OTHER LIABILITIES  

Note: See section 3AA .

Chapter 2 - Collection, recovery and administration of income tax  

PART 2-10 - PAY AS YOU GO (PAYG) INSTALMENTS  

Division 45 - Instalment payments  

Subdivision 45-I - Trust income included in instalment income of beneficiary  

SECTION 45-285   INSTALMENT INCOME INCLUDES DISTRIBUTIONS BY CERTAIN RESIDENT UNIT TRUSTS  

45-285(1)    
Your instalment income for a period includes trust income or trust capital that a unit trust distributes to you, or applies for your benefit, during that period if:

(a) the unit trust is a resident unit trust (within the meaning of section 102Q of the Income Tax Assessment Act 1936 ) for the income year of the trust that is or includes that period; and

(b) throughout that period:

(i) any of the units in the trust were listed for quotation in the official list of a stock exchange in Australia or elsewhere; or

(ii) any of the units in the trust were offered to the public; or

(iii) the units in the trust were held by at least 50 persons; and

(c) section 45-287 in this Schedule did not apply to the trust at any time during that period; and

(d) throughout that period, the trust ' s activities consisted only of activities listed in the definition of eligible investment business in section 102M of the Income Tax Assessment Act 1936 .

(It does not matter whether the trust income or trust capital is included in your assessable income for the income year that is or includes that period.)

45-285(2)    
Your instalment income for a period also includes trust income or trust capital that a unit trust distributes to you, or applies for your benefit, during that period if:

(a) the income or capital is not included in your instalment income under subsection (1); and

(b) the unit trust is a resident unit trust (within the meaning of section 102Q of the Income Tax Assessment Act 1936 ) for the income year of the trust that is or includes that period; and

(c) throughout that period, the trust ' s activities consisted only of activities listed in the definition of eligible investment business in section 102M of the Income Tax Assessment Act 1936 ; and

(d) throughout that period, either:

(i) you are yourself the trustee of a unit trust that satisfies each of paragraphs (1)(a) to (d) of this section; or

(ii) you are yourself the trustee of one or more trusts covered by section 45-288 ; or

(iii) you are exempt from tax; or

(iv) you are a *complying superannuation entity or a statutory fund of a *life insurance company.

(It does not matter whether the trust income or trust capital is included in your assessable income for the income year that is or includes that period.)

Extension - nominee and bare trust situations

45-285(3)    
In determining, for the purposes of subparagraph (1)(b)(iii), how many persons hold units in a unit trust, if:

(a) another trust (the holding trust ) is a unit holder in the unit trust; and

(b) the holding trust is a trust of the kind covered by subsection 45-280(6) ; and

(c) the beneficiary ' s or beneficiaries ' absolute entitlement exists at all times while the holding trust is in existence;

the beneficiary or beneficiaries count as persons who hold units in the unit trust, and the trustee of the holding trust does not.