Private ruling: Assessable income
Date of advice: 22 January 2026
Published: 16 March 2026
Ruling period: Year ended 30 June 20YY | Year ended 30 June 20YY | Year ended 30 June 20YY | Year ended 30 June 20YY | Year ended 30 June 20YY | Year ended 30 June 20YY | Year ending 30 June 20YY
Date scheme commenced: DD MM YYYY

Ruling: Q1: Will the Commissioner allow further time pursuant to paragraph 360-30(4)(b) of the Income Tax Assessment Act 1997 (ITAA 1997) for the Trust to give notice to members of its determination of the percentage that is the member's share of the notional tax offset in respect of the relevant income year? | A1: Yes. Based on the information provided to the Commissioner he will allow further time for the Trust to give notice to members of its determination of the percentage that is the member's share of the notional tax offset in respect of the relevant income year pursuant to paragraph 360-30(4)(b) of the ITAA 1997. | Q2: Will the tax cost base of the relevant shares be modified per section 360-50 of the ITAA 1997? | A2: Yes. Based on the information provided to the Commissioner the nominated individual is entitled to a tax offset under Subdivision 360-A in respect of the ordinary shares issued. Any tax consequences arising on a subsequent disposal of the shares held by the Trust will be eligible for modified CGT treatment in accordance with section 360-50 on the basis that the nominated individual has an entitlement to a tax offset under Subdivision 360-A.

Relevant facts and circumstances: Individual Z is the Trustee of the Trust. The Trust is a discretionary trust that was established by a trust deed. Individual Z is the primary beneficiary of the Trust. The Trust is not an early-stage venture capital limited partnership, widely held company, or a 100% subsidiary of a widely held company. Company Z is an Australian company which was incorporated in Australia several years ago and registered on the Australian Business Register. The Trust acquired a number of Company Z shares. The Trust's originally acquired Company Z shares were split to become a number of ordinary shares. No change to the tax cost base otherwise arose and no further amount was paid in connection with the share split. The Trust did not hold the majority of equity interests in Company Z immediately after the initial issue of its shares of Company Z that carried any of the rights under subparagraphs 360-15(1)(f)(i), (ii) or (iii). The Trust has confirmed that the Trust exercises no degree or influence over the business affairs of Company Z and vice versa. The shares issue to the Trust in Company Z were not issued under an employee share scheme. Several months ago, Company Z advised its shareholders that the company qualified as an early-stage innovation company under subsection 360-40(1) of the ITAA 1997, for the relevant financial years. The Trust has not previously issued a notice pursuant to subsection 360-30(4) of the ITAA 1997.

Relevant legislative provisions: Income Tax Assessment Act 1997 section 360-30