Document ID: chunk:federal_register_of_legislation:C2025C00029:section:7:p16
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 7 (pt 16/58)
Character Range: 2338769–2341623

the activities that are carried on by *subsidiary members of the group; and
 (b) the assets, employees and income of the subsidiary members of the group were assets, employees and income of the head company; and
 (c) each subsidiary member of the group were parts of the head company rather than separate entities.

Exception to requirements relating to location within Australia
 (12A) A company is taken to meet the requirements of subsection (2) in relation to an investment made by an entity if the sum of:
 (a) the value of the investment at the time the entity makes it; and
 (b) the total value of all the other investments that the entity owns at that time that do not, or apart from this subsection would not, meet those requirements;
does not exceed 20% of the partnership's *committed capital.
Note: See subsection (10) for the value of investments.

Ineligible activities
 (13) These activities are ineligible activities:
 (a) property development or land ownership;
 (b) finance, to the extent that it is any of the following:
 (i) banking;
 (ii) providing capital to others;
 (iii) leasing;
 (iv) factoring;
 (v) securitisation;
 (c) insurance;
 (d) construction (including extension, improvement or up‑grading) or acquisition of infrastructure facilities (within the meaning of section 93L of the Development Allowance Authority Act 1992, as in force just before the commencement of Schedule 6 to the Statute Update (Smaller Government) Act 2018) or related facilities (within the meaning of section 93M of that Act), or both;
 (e) making investments, whether made directly or indirectly, that are directed to deriving income in the nature of interest, rents, dividends, royalties or lease payments.
For the purposes of this subsection, activities that are ancillary or incidental to a particular activity are taken to form part of that activity.
Note: Under Division 362 in Schedule 1 to the Taxation Administration Act 1953, Industry Innovation and Science Australia can make rulings that activities, or classes of activities, are not ineligible activities.
 (13A) However, none of the following activities are ineligible activities mentioned in subsection (13):
 (a) developing technology for use in relation to an activity referred to in paragraph (13)(b), (c) or (e);
 (b) an activity that is ancillary or incidental to the activity of developing technology referred to in paragraph (a) of this subsection;
 (c) an activity referred to in paragraph (13)(b), (c) or (e) that is the subject of a finding in force under section 118‑432 at the time the investment is made.
 (13B) Subsection (13A) does not apply in circumstances prescribed by regulations made for the purposes of this subsection.

Industry Innovation and Science Australia discretion
 (14) A company is taken to meet the requirements of subsection (3) even if it fails to