Document ID: chunk:federal_register_of_legislation:C2025C00162:clause:1a_1207q
Version: federal_register_of_legislation:C2025C00162
Segment Type: clause
Provision Reference: sch 1A cl 1207Q
Character Range: 2551969–2554271

1207Q  Controlled private companies
 (1) For the purposes of this Part, a company is a controlled private company in relation to an individual if the company is a designated private company and:
 (a) the individual passes the control test set out in subsection (2); or
 (b) the individual passes the source test set out in subsection (3).

Control test
 (2) For the purposes of this section, an individual passes the control test in relation to a company if:
 (a) the aggregate of:
 (i) the direct voting interests in the company that the individual holds; and
 (ii) the direct voting interests in the company held by associates of the individual;
  is 50% or more; or
 (b) the aggregate of:
 (i) the direct control interests in the company that the individual holds; and
 (ii) the direct control interests in the company held by associates of the individual;
  is 15% or more; or
 (c) the company is sufficiently influenced by:
 (i) the individual; or
 (ii) an associate of the individual; or
 (iii) 2 or more entities covered by the preceding subparagraphs; or
 (d) the individual (either alone or together with associates) is in a position to exercise control over the company.

Source test
 (3) For the purposes of this section, an individual passes the source test in relation to a company if:
 (a) the individual has transferred property or services to the company after 7.30 pm, by standard time in the Australian Capital Territory, on 9 May 2000; and
 (b) the underlying transfer was made for no consideration or for a consideration less than the arm's length amount in relation to the underlying transfer.

No double counting
 (4) In calculating the aggregate referred to in paragraph (2)(a), a direct voting interest held because of subsection 1207R(2) is not to be counted under subparagraph (2)(a)(i) to the extent to which it is calculated by reference to a direct voting interest in the company that is taken into account under subparagraph (2)(a)(ii).
 (5) In calculating the aggregate referred to in paragraph (2)(b), a direct control interest held because of subsection 1207T(4) is not to be counted under subparagraph (2)(b)(i) to the extent to which it is calculated by reference to a direct control interest in the company that is taken into account under subparagraph (2)(b)(ii).