Document ID: chunk:federal_register_of_legislation:C2010C00637:clause:2_1
Version: federal_register_of_legislation:C2010C00637
Segment Type: clause
Provision Reference: sch 2 cl 1
Character Range: 4471–6017

1  At the end of section 45‑280 in Schedule 1
Add:

Exception for certain resident unit trusts

 (5) Your instalment income for the current period does not include an amount for a trust under subsection (1) if the conditions in either subsection 45‑285(1) or (2) are satisfied for you for that trust for that period.

Note: Your instalment income will instead include a distribution by the trust: see section 45‑285.

Exception for trusts whose beneficiary is absolutely entitled

 (6) Your instalment income for the current period does not include an amount for a trust under subsection (1) if, throughout the current period:
 (a) the trustee of the trust did not have any active duties to perform in the management of the trust (other than the duty to deal with the trust income and capital in accordance with any requests made or directions given by the beneficiary or beneficiaries); and
 (b) if there was only one beneficiary, the beneficiary:
 (i) was absolutely entitled to the trust assets; and
 (ii) had a vested and indefeasible interest in any trust income arising from time to time; and
 (c) if there was more than one beneficiary, each beneficiary:
 (i) was absolutely entitled to that beneficiary's interest in the trust assets; and
 (ii) had a vested and indefeasible interest in a proportion of any trust income arising from time to time, being a proportion that corresponded to the beneficiary's proportional interest in the trust capital.
Instead, your instalment income for the current period includes the following amount: