Income Tax Assessment Act 1997
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View history notePart 3-25 inserted by No 56 of 2010, s 3 and Sch 3 item 4, effective 3 June 2010.
Div 276 inserted by No 53 of 2016, s 3 and Sch 1 item 1, effective 5 May 2016. No 53 of 2016 (as amended by No 15 of 2019), s 3 and Sch 8 item 1 contains the following application provision:
S 1(1) amended by No 15 of 2019, s 3 and Sch 1 items 43
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45, by omitting
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income years starting on or after
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after
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to assessments for
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, substituting
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the 2016-17 income year and later income years
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for
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1 July 2016
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in para (a) and inserting
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income years starting on or after
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in para (b), effective 1 April 2019 and applicable in relation to the 2016-17 income year and later income years.
1 Application provision
(1)
The amendments apply to assessments for:
(a)
unless paragraph (b) applies
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the 2016-17 income year and later income years; or
(b)
if the assessment is in respect of a trust, and the trustee of the trust has made a choice under subitem (5)
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income years starting on or after 1 July 2015.
…
(5)
The trustee of a trust may make a choice for the purposes of paragraph (1)(b) if the 2015-16 income year of the trust starts on or after 1 July 2015.
(6)
The choice cannot be revoked.
Subdiv 276-J inserted by No 53 of 2016, s 3 and Sch 1 item 1, effective 5 May 2016. For application provision, see note under Div 276 heading.
SECTION 276-505 Meaning of debt-like trust instrument 276-505(1)
An instrument that gives rise to an interest in a trust is a debt-like trust instrument in relation to the trust if:
(a) the amount of any distribution relating to the interest is fixed, at the time the interest is created, by reference to the amount subscribed for the interest; and
(b) any distribution relating to the interest is made solely at the discretion of the trustee of the trust; and
(c) rights to distributions of capital or profits arising from all interests in the trust that are in the same * class as the interest, rank above all such rights arising from other interests in the trust (other than those covered under subsection (2)) if:
(i) the trust ceases to exist; or
(ii) where the trust is a * managed investment scheme - the scheme is under administration or is being wound up; and
(d) in a case where, in relation to a particular period, the trustee of the trust does not make a distribution relating to the interest - making a distribution of any of the following kinds, in relation to that period, is prohibited by the constituent documents of the trust:
(i) a distribution relating to any membership interest in the trust;
(ii) a distribution relating to a membership interest in another entity, if that interest is stapled together with a membership interest in the trust.
276-505(2)
This subsection covers an interest in the trust that:
(a) is not a * membership interest in the trust; or
(b) satisfies the requirements in paragraphs (1)(a) and (b).
S 276-505 inserted by No 53 of 2016, s 3 and Sch 1 item 1, effective 5 May 2016. For application provision, see note under Div 276 heading.
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