Document ID: chunk:federal_register_of_legislation:C2025C00014:schedule:2f:p39
Version: federal_register_of_legislation:C2025C00014
Segment Type: schedule
Provision Reference: sch 2F (pt 39/79)
Character Range: 2301470–2304083

of section 266‑115 (Listed widely held trust may be required to work out its net income and tax loss in a special way) and section 268‑20 (Widely held unit trust's income year to be divided into periods), the trust also does not pass the business continuity test under this section if, at any time during the business continuity test period, it incurs expenditure:
 (a) in carrying on a business of a kind that it did not carry on before the test time; or
 (b) as a result of a transaction of a kind that it had not entered into in the course of its business operations before the test time.

269‑105  Modified test for income years starting on or after 1 July 2015

Cases in which businesses need only be similar
 (1) A listed widely held trust also passes the business continuity test during a period (the business continuity test period) in relation to a time (the test time) and in relation to:
 (a) a tax loss for a loss year starting on or after 1 July 2015; or
 (b) net income for an income year starting on or after 1 July 2015; or
 (c) a debt, incurred in an income year starting on or after 1 July 2015, that the trust writes off as bad; or
 (d) a debt, incurred in an income year starting on or after 1 July 2015, in relation to which a debt/equity swap (within the meaning of section 63E) occurs;
if throughout the business continuity test period it carries on a business (its current business) that is similar to the business it carried on immediately before the test time (its former business).

Relevance of being a trust
 (2) The mere fact of being a trust does not mean that the trust cannot carry on a business.

Matters to be considered
 (3) Without limiting the matters that may be taken into account in ascertaining whether the trust's current business is similar to its former business, the following must be taken into account:
 (a) the extent to which the assets (including goodwill) that are used in its current business to generate assessable income throughout the business continuity test period were also used in its former business to generate assessable income;
 (b) the extent to which the activities and operations from which its current business generated assessable income throughout the business continuity test period were also the activities and operations from which its former business generated assessable income;
 (c) the identity of its current business and the identity of its former business;
 (d) the extent to which any changes to its former business result from development or commercialisation of assets, products, processes, services or marketing or organisational