Private ruling: Superannuation fund for foreign residents
Date of advice: 13 March 2026
Published: 29 June 2026
Ruling period: Income year ended 30 June 20XX | Income year ended 30 June 20XX | Income year ended 30 June 20XX | Income year ended 30 June 20XX | Income year ended 30 June 20XX | Income year ended 30 June 20XX | Income year ended 30 June 20XX
Date scheme commenced: 1 July 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 (as described in the relevant facts and circumstances of this Ruling) in accordance with paragraph 128B(3)(jb) of the Income Tax Assessment Act 1936 (ITAA 1936)? | A1: Yes.

Relevant facts and circumstances: 1. The Fund has its registered office in a country that is not Australia. The Fund's central management and control is not in Australia 2. The Fund is governed by its Articles of Incorporation. 3. The Fund operates to provide pension benefits to employees of the Employer. 4. The Fund's central management and control is not in Australia. All investment decisions relating to the Fund assets are made outside Australia. 5. The benefits the Member has accrued under the Fund shall be retained until such time as the Member retires, dies or terminates employment with the Employer. 6. The pension entitlements of the Fund are detailed in the Articles of Incorporation and State Legislature. 7. The Fund offers members a variety of pension options and accounts for members in cases of survivorship, death or disability. 8. The Fund allows for members to use their retirement balance in consideration for loans with eligible credit unions. 9. The Fund is managed by the Board of Trustees which is comprised of several members. The Board was established outside Australia and has its central management and control outside Australia. 10. The Employer has not set a date for the Fund to be terminated and its termination is not anticipated. 11. The Fund invests directly into Australia and owns several Australian assets. The Fund has provided a list of its assets. 12. The Fund's equity investments have the following characteristics: • The Fund holds less than 10% of the total equity interests on issue of each Australian company or trust. • Neither the Fund, nor any related party of the Fund has any involvement in the day-to-day management of the business of any of the Australian companies or trusts. • The Fund has no right to appoint a director to the Board of Directors of the Australian company or equivalent role in a trust. • The Fund has no right to representation on any investor representative or advisory committee (or similar) of the Australian company, or equivalent role in a trust. • The Fund has no ability to direct or influence the operation of the Australian company or trust outside of the ordinary rights conferred by the equity interest held. • The Fund only holds rights to vote in proportion to its equity interest in each Australian company or trust. 13. The Fund will receive interest, dividend and non-share dividend income from companies who are residents of Australia for tax purposes. 14. An amount paid to the Fund or set aside for the Fund has not been and cannot be deducted under the Income Tax Assessment Act 1997 (ITAA 1997). 15. A tax offset has not been allowed nor would be allowable for any amount paid to the Fund or set aside for the Fund. 16. The Fund is not a resident of Australia for tax purposes. 17. The Fund is exempt from taxation in accordance with statute in its country of residence.

Relevant legislative provisions: Income Tax Assessment Act 1936 paragraph 128B(3)(jb) | Income Tax Assessment Act 1936 paragraph 128B(3CA) | Income Tax Assessment Act 1936 section 128D | Income Tax Assessment Act 1997 section 118-520

Reasons for decision: Summary: The Fund is excluded from liability to withholding tax on interest, dividend and non-share dividend income derived from its Australian investments in accordance with paragraph 128B(3)(jb) of the ITAA 1936. | Detailed Reasoning - Detailed reasoning: Section 128B of the ITAA 1936 imposes liability to withholding tax on income derived by a non-resident that consists of dividend income (subsection 128B(1) of the ITAA 1936), interest income (subsection 128B(2) of the ITAA 1936) as well as other income prescribed in that section. Subsection 128B(3) of the ITAA 1936 notes that section 128B of the ITAA 1936 will not apply to prescribed categories of income. Relevantly, paragraph 128B(3)(jb) provides an exclusion from withholding tax for interest, dividends and non-share dividends derived by a superannuation fund for foreign residents (subject to the satisfaction of certain conditions). For the exclusion to apply, the interest, dividend and non-share dividend income must be: • derived by a superannuation fund for foreign residents (as defined in section 118-520 of the ITAA 1997), and • exempt from income tax in the country in which the superannuation fund for foreign residents arise. Further, from 1 July 2019, the extra requirements in subsection 128B(3CA) of the ITAA 1936 must also be met for an entity to be entitled to receive the exemption under paragraph 128B(3)(jb) of the ITAA 1936. These extra requirement in subsection 128B(3CA) of the ITAA 1936 were introduced by the Treasury Laws Amendment (Making Sure Foreign Investors Pay Their Fair Share of Tax in Australia and Other Measures) Act 2019 (Amendment Act) and apply from 1 July 2019 to the relevant interest, dividend and non-share dividend income from Australian assets which were acquired after 27 March 2018 and apply from 1 July 2026 to the relevant income from all Australian assets, regardless of the time the asset was acquired. Except where the transitional rules in Schedule 3 to the Amendment Act apply, from 1 July 2019, the extra requirements in subsection 128B(3CA) of the ITAA 1936 must also be met: (a) the superannuation fund satisfies the portfolio interest test in subsection (3CC) in relation to the entity mentioned in subsection (3CB) (the test entity ): o at the time the income was derived; and through any 12-month period that began no earlier than 24 months before that time and ended no later than that time; and (b) the superannuation fund does not, at the time the income was derived, have influence of a kind described in subsection (3CD) in relation to the test entity; and (c) the income is not non-assessable non-exempt income of the superannuation fund because of: (i) Subdivision 880-C of the Income Tax Assessment Act 1997 ; or (ii) Division 880 of the Income Tax (Transitional Provisions) Act 1997 . Each of these requirements is considered as set out below. | Detailed Reasoning - The Fund is a non-resident: The Fund was established in a foreign country, and its management is completely based there. The Commissioner accepts that the Fund is not a resident of Australia for tax purposes. Therefore, the Fund satisfies this requirement. | Detailed Reasoning - The Fund is a superannuation fund for foreign residents: Superannuation fund for foreign residents is a defined term in the ITAA 1936. Subsection 6(1) of the ITAA 1936 states: superannuation fund for foreign residents has the meaning given by subsection 995-1(1) of the Income Tax Assessment Act 1997 . Subsection 995-1(1) of the ITAA 1997 sets out the following: superannuation fund for foreign residents has the meaning given by section 118-520. The term 'superannuation fund for foreign residents' is defined in section 118-520 of the Income Tax Assessment Act 1997 (ITAA 1997) as follows: | Detailed Reasoning - 118-520 Meaning of superannuation fund for foreign residents: 1. A fund is a superannuation fund for foreign residents at a time if: a. at that time, it is: i.an indefinitely continuing fund; and ii.a provident, benefit, superannuation or retirement fund; and b. it was established in a foreign country; and c. it was established, and is maintained at that time, only to provide benefits for individuals who are not Australian residents; and d. at that time, its central management and control is carried on outside Australia by entities none of whom is an Australian resident. 2. However, a fund is not a superannuation fund for foreign residents if: a. an amount paid to the fund or set aside for the fund has been or can be deducted under this Act; or b. a *tax offset has been allowed or is allowable for such an amount. Consequently, for the Fund to be considered a superannuation fund for foreign residents for the purposes of paragraph 128B(3)(jb) of the ITAA 1936, it must be established that: • the Fund is an indefinitely continuing fund • the Fund is a provident, benefit, superannuation or retirement fund • the Fund was established in a foreign country • the Fund was established and maintained only to provide benefits for individuals who are not Australian residents • The central management and control of the Fund is carried on outside of Australia by entities none of whom are Australian residents • No amount paid to the Fund or set aside for the Fund has been or can be deducted under the ITAA 1997, and • No tax offsets have been allowed or would be allowable for an amount paid to the Fund or set aside for the Fund. | Detailed Reasoning - The Fund is an indefinitely continuing fund: The term 'indefinitely continuing fund' is not defined in either the ITAA 1997 or the ITAA 1936. Therefore, it should be given its ordinary meaning subject to the context in which it appears and having regard to any relevant case law authorities. The Australian Oxford Dictionary , 2004, Oxford University Press, Melbourne defines the term 'fund' as 1. a permanent stock of something ready to be drawn upon ... 2. a stock of money, especially one set apart for a purpose. In Scott v. FC of T (No 2) (1966) 14 ATD 333; (1966) 10 AITR 290 (Scott) , Windeyer J expressed the view that 'fund' in the context of 'superannuation fund' ordinarily meant 'money (or investments) set aside and invested, the surplus income therefrom being capitalised'. Windeyer J's views in Scott were cited with approval by Hill J in Walstern Pty Ltd v. Commissioner of Taxation (2003) 138 FCR 1; 2003 ATC 5076; (2003) 54 ATR 423 who stated that 'for present purposes, the point is the need for "money" or "other property" to constitute a fund'. The general view is that an indefinitely continuing fund does not have to continue forever, but rather that the governing rules should not fix an express termination date. The Fund was created by State Legislature. The Fund's Articles of Incorporation do not establish a planned end date for the Fund, and there are currently no plans for the Fund to be dissolved or wound up and no indication that there is any contemplation of the Fund ending at a defined point in time. The Commissioner accepts that the Fund will continue to operate in accordance with the Articles of Incorporation for an indefinite period of time. Further, the Fund provided a statement to the Commissioner Fund is an indefinitely continuing fund and that, "Any mechanism for winding up or termination must take place through a [...] legislative process." Therefore, the Fund satisfies this requirement. | Detailed Reasoning - The Fund is a provident, benefit, superannuation or retirement fund: The phrase 'a provident, benefit, superannuation or retirement fund' under subparagraph 118-520(1)(a)(ii) is not defined in either the ITAA 1997 or the ITAA 1936. However, the phrase has been subject to judicial consideration. In Scott , the High Court examined the terms 'superannuation fund' and 'fund'. Justice Windeyer stated at ATD 351; AITR 312; ALJR 278 that: ... I have come to the conclusion that there is no essential single attribute of a superannuation fund established for the benefit of employees except that it must be a fund bona fide devoted as its sole purpose to providing for employees who are participants money benefits (or benefits having a monetary value) upon their reaching a prescribed age. In this connexion "fund", I take it, ordinarily means money (or investments) set aside and invested, the surplus income there from being capitalised. In a later case, Mahoney v. Commissioner of Taxation (Cth) (1967) 41 ALJR 232; (1967); 14 ATD 519; 10 AITR 463 (Mahoney case), the High Court took a similar view as in Scott, Justice Kitto expressed the view at ALJR 232; (1967); ATD 520; AITR 464 that: All that need be recognised is that just as 'provident' and 'superannuation' both referred to the provision of a particular kind of benefit - in the one case a provision against contemplated contingencies, and in the other case a provision, to arise on an employee's retirement or death or other cessation of employee, of a subvention for him or his estate or persons towards whom he may have stood in some kind of relation commonly giving rise to a legal or moral responsibility - so 'benefit' must have meant a benefit, not a general sense, but characterised by some specific future purpose. The conventional meaning adopted by courts was expressed by Justice Jessup in Cameron Brae Pty Ltd v Federal Commissioner of Taxation [2006] FCA 918; ATC 4433; 63 ATR 488 as follows: As a matter of common understanding, it would seem that a superannuation fund is a fund which has as its sole purpose the provision of benefits to participating employee upon their reaching a prescribed age or upon their retirement, death or other cessation of employment. The court found that the expression takes its meaning from past usage and the meaning of the several expressions must be arrived at in light of their ordinary usage. As such, the term 'benefit' requires a purpose narrower than conferring benefits in a completely general sense. The benefit must be characterised by some future purpose. Likewise, a provident fund must not refer to the provision of funds in a general sense but must relate to a provision against contemplated contingencies. The above mentioned cases emphasise that the benefits must be provided for a specific purpose and require that there is a connection between the benefit received and the provision by the fund for retirement or death of a member or against 'contemplated contingencies', such as death, disability or serious illness. The Fund was established State legislature to provide retirement benefits to the Fund's participants on the satisfaction of the Fund's requirements. Members must meet eligibility requirements around their age and years of service to access benefits and may also be provided with disability benefits and survivors benefits by the Fund where requirements and elections are met. Whilst members of the Fund are authorised to assign their accumulated employee contributions to eligible firefighters' credit unions in consideration of a designated loan, members cannot borrow from their accumulated employee or employer contributions and distributions are not permissible prior to separation of service or retirement. These benefits are consistent with the ordinary meaning of 'provident, benefit, superannuation, or retirement fund' as that phrase has been interpreted by the relevant authorities. Therefore, for the purposes of subparagraph 118-520(a)(ii) of the ITAA 1997, the Commissioner accepts that the benefits of the Fund align with the sole purpose of providing retirement benefits or benefits in other allowable contemplated contingences. Therefore, the Fund will satisfy this requirement. | Detailed Reasoning - The Fund was established in a foreign country: The Fund was established in a foreign country and is a resident of that country for tax purposes. Therefore, the Fund satisfies this requirement. | Detailed Reasoning - The Fund was established and maintained only to provide benefits for individuals who are not Australian residents: The Fund was established in a foreign country for the purpose of providing retirement allowances and other benefits to the Fund's members in accordance with the local Legislature. The Fund's members include any employee. It is accepted that members reside in the foreign country and are not generally Australian residents. It is considered that the possibility of a very small number of members being returned residents or becoming Australian residents after ceasing eligible employment is incidental and should not be taken to conclude that the Fund, in this case, has not been established and is not maintained only to provide benefits for non-residents. Accordingly, the Commissioner accepts that the Fund was established, and is maintained, only to provide benefits for individuals who are not Australian residents. Therefore, the Fund satisfies this requirement. | Detailed Reasoning - The Fund's central management and control is carried on outside Australia by entities none of whom is an Australian resident: Paragraphs 20 and 21 of Taxation Ruling TR 2008/9 Income tax: meaning of 'Australian superannuation fund' in subsection 295-95(2) of the Income Tax Assessment Act 1997 (TR 2008/9) states in respect of the central management and control (CM&C) of a superannuation fund: 20. The CM&C of a superannuation fund involves a focus on the who, when and where of the strategic and high level decision making processes and activities of the fund. In the context of the operations of a superannuation fund, the strategic and high level decision making processes includes: • formulating the investment strategy for the fund; • reviewing and updating or varying the fund's investment strategy as well as monitoring and reviewing the performance of the fund's investments; • if the fund has reserves - the formulation of a strategy for their prudential management; and • determining how the assets of the fund are to be used to fund member benefits. 21. The other principal areas of operation of a superannuation fund that form part of the day-to-day or operational side of the fund's activities will not constitute CM&C. These activities do not form part of the CM&C of the fund because they are not of a strategic or high level nature. Rather, these activities are of a more formalistic or administrative nature. Examples of such activities include the acceptance of contributions that are made on a regular basis, the actual investment of the fund's assets, the fulfilment of administrative duties and the preservation, payment and portability of benefits. Furthermore, paragraphs 10 and 11 of Taxation Ruling TR 2018/5 Income tax: central management and control test of residency (TR 2018/5) states: 10. Central management and control refers to the control and direction of a company's operations. It does not refer to a physical location in which the control and direction of a company is located and may ultimately be exercised in more than one location. 11. The key element in the control and direction of a company's operations is the making of high-level decisions that set the company's general policies and determine the direction of its operations and the type of transactions it will enter. The Fund was established in a foreign country. The decision making, management and administration of the Fund is undertaken by a board of trustees. "Board of trustees" is a defined term in the Fund's Articles of Incorporation which states that the term is given meaning by the local legislature. The relevant provision provides that the general administration and responsibility for the proper operation of the Fund is governed by the board of several trustees which is comprised of various representatives. Under the legislative reference noted above, the administration of the Fund is domiciled in the relevant parish "except in such case as there is provision for joint administration of this system with another state or statewide retirement system." This means that the decisions made by the fund are to be made within the Fund's locality unless otherwise done for the purpose of joint administration with another system. Based on these facts, it is reasonable to conclude that the central management and control of the Fund occurs outside of Australia in the foreign country by entities that are not Australian residents. Therefore, the Fund satisfies this requirement. No amount paid to the Fund or set aside for the Fund has been or can be deducted under the ITAA 1997 and no tax offset has been allowed or is allowable for such an amount Pursuant to subsection 118-520(2) of the ITAA 1997, a fund is not a superannuation fund for foreign residents if: a) an amount paid to the fund or set aside for the fund has been or can be deducted under the Act; or b) a tax offset has been allowed or is allowable for such an amount. An amount paid to the Fund or set aside for the Fund has not been and cannot be deducted under the ITAA 1997. A tax offset has not been allowed nor would be allowable for any amount paid to the Fund or set aside for the Fund. Therefore, the Fund satisfies this requirement. | Detailed Reasoning - Conclusion: As all of the above requirements are satisfied, the Fund meets the requirements of being a superannuation fund for foreign residents as defined by section 118-520 of the ITAA 1997 for the purposes of subparagraph 128B(3)(jb)(i) of the ITAA 1936. | Detailed Reasoning - The income consisting of interest, dividend or non-share dividend income is derived by the Fund: Subsection 128B(3CA) of the ITAA 1936, along with paragraph 128B(3)(jb) of the ITAA 1936 requires the superannuation fund for foreign residents to derive the interest, dividend or non-share dividend income paid by Australian resident companies. It is accepted that the Fund is the beneficial owner of its Australian investments. It will, therefore, derive the relevant income for the purposes of subsection 128(3CA) of the ITAA 1936 and paragraph 128B(3)(jb) of the ITAA 1936. Therefore, the Fund satisfies this requirement. For complex investment structures that the Fund invests (as described in the relevant facts and circumstances of this Ruling), the information as outlined in the 'Further issues for you to consider' section should be considered in assessing whether each investment meets the requirements of subsection 128B(3CA) of the ITAA 1936 and paragraph 128B(3)(jb) of the ITAA 1936. | Detailed Reasoning - The Fund is exempt from income tax in the country in which the non-resident resides: The Fund is exempt from taxation on the interest, dividend and non-share dividend paid by Australian companies in the foreign country in accordance with the foreign country's tax legislation. Therefore, the Fund will satisfy this requirement. | Detailed Reasoning - Otherwise non-assessable non-exempt: The income received by the Fund will not be non-assessable non-exempt income because of Subdivision 880-C of the ITAA 1997 or Division 880 of the Income Tax (Transitional Provisions) Act 1997 . Income derived by Fund would not be otherwise treated as not assessable and not exempt by virtue of the above provisions. Accordingly, the above exclusion should not apply to exclude the Fund from entitlement to the withholding tax exemption for superannuation funds for foreign residents. | Detailed Reasoning - Subsection 128B(3CA) of the ITAA 1936: The Treasury Laws Amendment (Making Sure Foreign Investors Pay Their Fair Share of Tax in Australia and Other Measures) Act 2019 introduced extra requirements that must be met for paragraph 128B(3)(jb) of the ITAA 1936 to apply. Generally, these extra requirements apply from 1 July 2019 onwards. These extra requirements apply only to assets which were acquired after 27 March 2018 and apply to all assets after 30 June 2026 regardless of the time and date the asset was acquired. The Fund provided a list of Australian investments some of which were acquired on or before 27 March 2018 and some acquired after 27 March 2018. Relevantly: i. The fund must satisfy the 'portfolio interest test' in relation to the test entity (subsection 128B(3CC) ii. The fund must satisfy the 'influence test' (subsection 128B(3CD) in relation to the test entity, and iii. The income cannot otherwise be non-assessable non-exempt income of the Fund because of: a. Subdivision 880-C of the ITAA 1997, or b. Division 880 of the Income Tax (Transitional Provisions) Act 1997 . | Detailed Reasoning - The Fund satisfies the 'portfolio interest test': Subsection 128B(3CC) of the ITAA 1936 states: A superannuation fund satisfies the portfolio interest test in this subsection in relation to the test entity at a time if, at that time, the total participation interest (within the meaning of the Income Tax Assessment Act 1997 ) the superannuation fund holds in the test entity: (a) is less than 10%; and (b) would be less than 10% if, in working out the direct participation interest (within the meaning of that Act) that any entity holds in a company: (i) an equity holder were treated as a shareholder; and (ii) the total amount contributed to the company in respect of non-share equity interests were included in the total paid-up share capital of the company. Subsection 128B(3CB) defines the test entity to be either the entity that paid the interest, dividends or non-share dividends or, if subsection 128A(3) of the ITAA 1936 applies in relation to a resident trust estate, that trust estate. Subsection 995-1(1) of the ITAA 1997 defines total participation interest to have the meaning given by section 960-180 of the ITAA 1997, which states: An entity's total participation interest at a particular time in another entity is the sum of: (a) the entity's *direct participation interest in the other entity at that time; and (b) the entity's *indirect participation interest in the other entity at that time. A 'direct participation interest' that the Fund will have in a test entity is defined in the table in subsection 960-190(1) of ITAA 1997 and depends on what type of entity the other entity is. Item 1 of the table in subsection 960-190(1) and subsection 960-190(2) of the ITAA 1997 provide that a direct participation interest in a company is the 'direct control interest' (within the meaning of section 350 of the ITAA 1936 excluding the operation of subsections 350(6) and (7)) that the first entity holds in the other entity. Subsection 350(1) of the ITAA 1936 provides that an entity holds a direct control interest in a company at a particular time equal to the percentage of: (a) total paid up share capital (b) voting rights, or (c) rights to distributions of capital or profits that it holds in the company. Where there are different percentages in each of the above, the direct control interest is the greater or greatest of those percentages. Subsection 350(2) of the ITAA 1936 provides that where an entity holds different percentages of total rights to vote for the purposes of (b) above, the highest of those percentages applies in establishing the direct control interest. Subsection 960-185(1) of the ITAA 1997 provides that an entity's indirect participation interest in a test entity is established by multiplying its direct participation interest in an intermediate entity by the sum of the intermediate entity's direct and indirect participation interests in the test entity. As per the relevant facts and circumstances of this Ruling, the Fund does not hold more than 10% of the total participation of any of the entities in which it invests. In these circumstances, the Commissioner is satisfied that the total participation interest that the Fund holds in the test entities: • is less than 10% pursuant to paragraph 128B(3CC)(a) of the ITAA 1936 at all relevant times; and • would be less than 10% in the circumstances detailed in paragraph 128B(3CC)(b) of the ITAA 1936 at all relevant times. The Fund therefore satisfies the 'portfolio interest test' in respect of its Australian Investments as described in the relevant facts and circumstances of this Ruling. The Fund does not have influence of a kind described in subsection 128B(3CD) of the ITAA 1936 in relation to the test entity at the time the income was derived Subsection 128B(3CD) of the ITAA 1936 states: A superannuation fund has influence of a kind described in this subsection in relation to the test entity at a time if any of the following requirements are satisfied at that time: (a) the superannuation fund: (i) is directly or indirectly able to determine; or (ii) in acting in concert with others, is directly or indirectly able to determine; the identity of at least one of the persons who, individually or together with others, make (or might reasonably be expected to make) the decisions that comprise the control and direction of the test entity's operations; (b) at least one of those persons is accustomed or obliged to act, or might reasonably be expected to act, in accordance with the directions, instructions or wishes of the superannuation fund (whether those directions, instructions or wishes are expressed directly or indirectly, or through the superannuation fund acting in concert with others). As such, there are two distinct sub-tests within the influence test. Sub-test 1 of the influence test, as contained in paragraph 128B(3CD)(a) of the ITAA 1936, assesses whether the Fund is able to determine the identity of at least one of the persons who, individually or together with others, makes or is reasonably expected to make, decisions comprising the control and direction of the test entity's operations. This includes situations where the Fund is able to act in concert with others to determine the identity of a relevant decision-maker in the test entity. Sub-test 1 also extends to situations where the Fund, in its own right, holds the ability to approve or veto decisions which go to the control or direction of the test entity. Sub-test 2 of the influence test, as contained in paragraph 128B(3CD)(b) of the ITAA 1936, assesses whether at least one of the relevant decision-making persons of the test entity is accustomed or obliged to act, or might reasonably be expected to act, in accordance with the directions, instructions or wishes of the Fund. Relevantly, in respect of the Fund's Australian investments as described in the relevant facts and circumstances of this Ruling: • The Fund holds less than 10% of the total equity interests on issue of the Australian companies in which it invests. • Neither the Fund, nor any related party, is involved in the day-to-day management of the business of any of the Australian companies or trusts. • Neither the Fund, nor any related party, has the right to appoint a director to the Board of Directors of the Australian company, Australian debt issuer or equivalent role in a trust. • Neither the Fund, nor any related party, holds the right to representation on any investor representative or advisory committee (or similar) of the Australian companies or trusts. • Neither the Fund, nor any related party, has the ability to direct or influence the operation of the Australian companies or trusts outside of the ordinary rights conferred by the equity interest held. • The Fund has not entered into or received any side letters, arrangements or agreements. • The Fund only holds rights to vote in proportion to its equity interest in each of the Australian companies or trusts. • In addition to the above, the Fund does not have the ability to direct or influence the operation of the companies or otherwise provide the Fund with anything that would constitute influence under subsection 128B(3CD) of the ITAA 1936. Accordingly, the Fund does not have influence of a kind described in subsection 128B(3CD) of the ITAA 1936 in respect of its Australian investments. The Fund does not have capacity to influence (either directly or indirectly) the day-to-day management of the operations of their investments. Consequently, the Commissioner accepts that the Fund does not have influence of a kind described in subsection 128B(3CD) of the ITAA 1936. The income received by the Fund is not non-assessable and non-exempt income of the Fund because of Subdivision 880-C of the ITAA 1997 or Division 880 of the Income Tax (Transitional Provisions) Act 1997 The interest, dividend and non-share dividend income received by the Fund will not be non-assessable non-exempt income because of Subdivision 880-C of the ITAA 1997 or Division 880 of the Income Tax (Transitional Provisions) Act 1997 . The Fund therefore satisfies this condition in respect of its investments. | Detailed Reasoning - Conclusion: As the Fund has met both the pre-existing and extra requirements under paragraph 128B(3)(jb) of the ITAA 1936, the Fund is excluded from liability to withholding tax on its interest, dividend and non-share dividend income derived from its Australian investments under paragraph 128B(3)(jb) of the ITAA 1936.

Does IVA apply to this private ruling?: Part IVA of the Income Tax Assessment Act 1936 contains anti-avoidance rules that can apply in certain circumstances where you or another taxpayer obtains a tax benefit, imputation benefit or diverted profits tax benefit in connection with an arrangement. | If Part IVA applies, the tax benefit or imputation benefit can be cancelled (for example, by disallowing a deduction that was otherwise allowable) or you or another taxpayer could be liable to the diverted profits tax. | We have not fully considered the application of Part IVA to the arrangement you asked us to rule on, or to an associated or wider arrangement of which that arrangement is part. | If you want us to rule on whether Part IVA applies, we will need to obtain and consider all the facts about the arrangement which are relevant to determining whether Part IVA may apply. | For more information on Part IVA, go to our website ato.gov.au/gaar . | Question: Is the Fund excluded from liability to withholding tax on interest, dividend and non-share dividend income derived from its investments in accordance with paragraph 128B(3)(jb) of the Income Tax Assessment Act 1936 (ITAA 1936)?