Private ruling: Fund excluded from liability to withholding tax on interest
Date of advice: 9 December 2025
Published: 2 February 2026
Ruling period: 1 April 20XX to 30 June 20XX
Date scheme commenced: 1 April 20XX

Ruling: Q1: Is the Fund excluded from liability to withholding tax on interest, dividend and non-share dividend income derived from its Australian investments in the Test Entities in accordance with paragraph 128B(3)(jb) of the Income Tax Assessment Act 1936 ('ITAA 1936')? | A1: Yes.

Relevant facts and circumstances: The Fund 1. The Fund is a Defined Benefit Scheme, and the income to be derived from its Australian investments will be exempt from income tax in its country of residence. 2. The Fund provides a defined benefit superannuation for employees of the Principal Employer and any Associated Employer. 3. An Associated Employer is any of the following that have been designated an 'Associated Employer' by the Principal Employer: • Any body corporate deemed to be a subsidiary or holding company of the Principal Employer or a subsidiary of any such holding company • Any individual, body corporate or partnership which is otherwise associated in business with the Principal Employer 4. The Fund is governed by a Trust Deed as amended by various deeds of variation. 5. Any amendments made to the Trust Deed must not cause the main purpose of the Fund to be other than the provision of pensions for Members on retirement. Membership and Contributions 6. The Fund is generally closed to new Members and closed to future accrual. 7. Generally, certain Members must contribute a percentage of their Pensionable Salary to the Fund. Additionally, each of the Participating Employers pay contributions to the Fund as determined by the Trustees and Principal Employer. 8. Active Members may, by agreement with the Trustee, pay additional voluntary contributions (AVCs) to the Fund in accordance with published provisions. AVCs will be applied by the Trustee to provide additional benefits to or in respect of the Member. Benefits and withdrawal 9. Typically, each of the Member Benefits Sections of the Fund provide for the following benefits: • A pension on leaving Service at Normal Retirement Age • An adjusted pension on early or late retirement • A refund of contributions or deferred pensions for certain eligible early leavers (relevant taxes to be paid) • Incapacity and Death benefits 10. Where Members have made AVCs, the following options are available: a. The value of the AVC can be used to purchase additional pension and/or cash lump sum from the Fund; or b. The value of the AVC can be transferred to another pension scheme. 11. A Member may be refunded a lump sum of excess contributions in accordance with the relevant legislation. Management and continuation of the Fund 12. The administration and management of the Fund is vested in the Trustee. The Trustee Directors manage the Fund in line with the Trust Deed. The Trustee Board oversees the strategic matters, including making all scheme-wide decisions, and delegates responsibility to sub-committees as necessary to optimise the Fund's efficiency. 13. The Trust Deed allows for the Closure or Termination of the Fund where certain conditions are met. 14. Upon Closure of the Fund, no new Members will be admitted to the Fund, the accrual of Pensionable Service and benefits under the Fund will cease, and no further contributions will be payable. 15. The closure of all or part of the Fund will not affect the continued operation of the Trust Deed in relation to benefits for Pensionable Service up to the date of closure, including any deferred or other entitlement by reference to Pensionable Service terminated by the closure. 16. In the instance that the Fund, or part thereof, has been terminated, the accrual of Service and benefits will cease and the Trustee will wind-up the Fund or the relevant part in accordance with the Trust Deed. 17. In accordance with the Trust Deed, after the payment of any benefits which have already fallen due to be paid, and subject to the payment of all costs, charges and expenses, the Trustee must use the assets of the Fund to secure the benefits payable in order of priority as set out in the Trust Deed. Australian Investments 18. The Trustee has appointed a Custodian. 19. The Trustee appoints third-party investment managers. 20. The Fund legally and beneficially owns its Australian investments. The Australian investments are made directly by the Fund, under segregated mandate, and are not pooled, and there are no interposed entities between the Australian investments of the Fund and the Fund itself. 21. At present, the Fund has invested in Australian debt securities and receives interest income from those investments. 22. The investments which are covered by this Ruling are investments in the Test Entities which have all the characteristics listed in either Fact 23 or 24 below. 23. The debt interests that are covered by this Ruling are investments in the Test Entities held by the Fund which have all of the following characteristics: a. The debt interests provide no rights to representation, no voting rights, and no ability to influence the Test Entities. b. The debt interests have broad financial covenants, and do not allow the Fund to have any influence or control over the debt issuer's management. The covenants are in accordance with industry standard. c. The debt interests do not provide any right or option for conversion to equity at any time. d. The debt interests do not otherwise give the Fund any other influence in the Test Entities. 24. The equity interests that are covered by this Ruling are investments in the Test Entities held by the Fund which have all of the following characteristics: a. All securities are listed on the Australian Securities Exchange (ASX) or another recognised stock exchange. b. The Fund, and its related parties, hold collectively less than 10% of the total participation interests in the circumstances detailed in paragraph 128B(3CC)(b) of the ITAA 1936. c. Neither the Fund, nor any related party, has any involvement in the day to day management of the business of any of the Test Entities. d. Neither the Fund, nor any related party, has any right to representation on the Board of Directors of any of the Test Entities. e. Neither the Fund, nor any related party, has any right to representation on any investor representative or advisory committee (or similar) of any of the Test Entities. f. Neither the Fund, nor any related party, has the ability to direct or influence the operation of the Test Entities outside of the ordinary rights conferred by the interest held. g. The Fund's interests in the Test Entities do not provide it with an entitlement to either directly or indirectly determine the identity of any person who makes decisions that comprise the control and direction of the Test Entities' operations. h. No person involved in the control and direction of the Test Entities' operations is accustomed or obliged to act in accordance with the directions, instructions or wishes of the Fund. Additional Information 25. The Trustee of the Fund has provided a letter to the Commissioner, confirming that: a. The Fund is an indefinitely continuing fund. b. The Fund was established in a country other than Australia. c. The Fund was established and is maintained only to provide benefits for individuals who are not Australian residents. d. The Fund's central management and control is carried on outside Australia by entities none of whom are Australian residents. e. No amount paid to the Fund can be deducted under the Income Tax Assessment Act 1997 (ITAA 1997) or ITAA 1936. f. No offsets would be allowable for an amount paid to the Fund or set aside for the Fund. g. The income of the Fund is not non-assessable non-exempt income of the Fund because of either: i. Subdivision 880-C of the ITAA 1997 ii. Division 880 of the Income Tax (Transitional Provision) Act 1997.

Relevant legislative provisions: Income Tax Assessment Act 1936 paragraph 128B(3)(jb) | Income Tax Assessment Act 1936 section 128D