Document ID: chunk:federal_register_of_legislation:C2025C00029:section:2:p31
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 2 (pt 31/59)
Character Range: 2609281–2611950

are stapled together to form stapled securities; and
 (b) at least one of the trusts is a trust whose trustee is not assessed and liable to pay tax under Division 6C of Part III of the Income Tax Assessment Act 1936; and
 (c) if no company is involved—at least one of the trusts is a trust whose trustee is assessed and liable to pay tax under Division 6C of Part III of that Act; and
 (d) under a *scheme for reorganising the affairs of the relevant *stapled entities, you and the other entities that own the ownership interests in the stapled entities (together the exchanging members):
 (i) stop being the owner of those ownership interests and acquire ownership interests in a new unit trust (the interposed trust) and nothing else (a new trust case); or
 (ii) retain their ownership interests in one of those trusts (also the interposed trust), stop being the owner of the remaining ownership interests that form the stapled securities and receive nothing other than ownership interests in the interposed trust, or an increase in value of their existing ownership interests in the interposed trust, or both (an existing trust case); and
Note: See section 124‑20 if an exchanging member uses an interest sale facility.
 (e) under the scheme, the interposed trust becomes the owner of:
 (i) for a new trust case—all of the ownership interests in the stapled entities; or
 (ii) for an existing trust case—all of the ownership interests in the other stapled entities; and
 (f) the conditions in section 124‑1050 are satisfied.
Note: Division 6C of Part III of the Income Tax Assessment Act 1936 deals with taxing public trading trusts in the same way as companies.
 (2) An entity is a stapled entity in relation to stapled securities if *ownership interests in the entity form part of the stapled securities.
 (3) Ignore for the purposes of subsection (1) *ownership interests held by one *stapled entity in another stapled entity as at the start of the day on which the Bill for this Act was introduced into the Parliament.

124‑1050  Conditions
 (1) Just after the *scheme is completed (the completion time), each exchanging member must own a percentage of the *ownership interests in the interposed trust that reasonably equates to the percentage of the ownership interests that the member owned in the *stapled entities.
Example: Public Company A, Unit Trust No. 1 and Unit Trust No. 2 are stapled entities. Each stapled entity has 4,000 ownership interests on issue. There are no ownership interests in any of the stapled entities other than shares in the company and units in the trusts.
 Under a scheme for reorganising the stapled entities, Unit Trust No. 3 is