Document ID: chunk:federal_register_of_legislation:C2025C00180:clause:1_2:p8
Version: federal_register_of_legislation:C2025C00180
Segment Type: clause
Provision Reference: sch 1 cl 2 (pt 8/18)
Character Range: 799796–802537

existence;
the beneficiary or beneficiaries count as persons who hold units in the unit trust, and the trustee of the holding trust does not.

45‑286  Instalment income includes distributions by certain managed investment trusts
  Your instalment income for a period includes trust income or trust capital that a trust distributes to you, or applies for your benefit, during that period if:
 (a) the income or capital is not included in your instalment income under section 45‑280 or 45‑285; and
 (b) the trust satisfies the condition in paragraph 275‑10(3)(a) of the Income Tax Assessment Act 1997 in relation to the income year that is or includes that period; and
 (c) the trust is a *managed investment trust for that income year; and
 (d) the trust meets the requirement in section 275‑110 of that Act throughout the income year.
(It does not matter whether the trust income or trust capital is included in your assessable income for the income year that is or includes that period.)

45‑287  When trusts are disqualified due to concentrated ownership

Concentrated ownership
 (1) This section applies to a trust if an individual holds, or up to 20 individuals hold between them directly or indirectly and for their own benefit, interests in the trust:
 (a) carrying *fixed entitlements to:
 (i) at least 75% of the trust's income; or
 (ii) at least 75% of the trust's capital; or
 (b) if beneficiaries of the trust have a right to vote in respect of activities of the trust—carrying at least 75% of those voting rights.

Single individual
 (2) Subsection (1) operates as if all of these were a single individual:
 (a) an individual, whether or not the individual holds interests in the trust; and
 (b) the individual's *associates; and
 (c) for any interests in respect of which other individuals are nominees of the individual or of the individual's associates—those other individuals.

Concentrated ownership—potential due to possible variation of rights etc.
 (3) This section also applies to a trust if, because of:
 (a) any provision in the trust's constituent document, or in any contract, agreement or instrument:
 (i) authorising the variation or abrogation of rights attaching to any of the interests in the trust; or
 (ii) relating to the conversion, cancellation, extinguishment or redemption of any of those interests; or
 (b) any contract, *arrangement, option or instrument under which a person has power to acquire any of those interests; or
 (c) any power, authority or discretion in a person in relation to the rights attaching to any of those interests;
it is reasonable to conclude that the rights attaching to any of the interests are capable of being varied or abrogated in such a way (even if they are not in fact