Tax Laws Amendment (2005 Measures No. 6) Act 2006 (13 of 2006)

Schedule 2   Extension of mutuality principle

Income Tax Assessment Act 1997

3   At the end of Division 59

Add:

59-35 Amounts that would be mutual receipts but for prohibition on distributions to members

An amount of *ordinary income of an entity is not assessable income and not *exempt income if:

(a) the amount would be a mutual receipt, but for the entity's constituent document preventing the entity from making any *distribution, whether in money, property or otherwise, to its members; and

(b) apart from this section, the amount would be assessable income only because of section 6-5.