Document ID: chunk:federal_register_of_legislation:C2025C00029:section:7:p19
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 7 (pt 19/58)
Character Range: 2346446–2349142

trust only because it is an *associate of the unit trust because of an investment made in the entity by the partnership.

Location within Australia
 (3) The unit trust:
 (a) must, at the time the investment is made, carry on *business in Australia; and
 (b) must, at that time, meet at least one of the following requirements:
 (i) the central management and control of the unit trust is in Australia;
 (ii) more than 50% of the beneficial interests in the income of the unit trust are held by Australian residents;
 (iii) more than 50% of the beneficial interests in the property of the unit trust are held by Australian residents; and
 (c) if at that time the entity making the investment does not own any other investments in the unit trust—must meet the following requirements:
 (i) more than 50% of the people who are currently engaged by the trustee of the unit trust to perform services must perform those services primarily in Australia;
 (ii) more than 50% of its assets (determined by value) must be situated in Australia;
  during the whole of the period of 12 months, or such shorter period as *Industry Innovation and Science Australia determines under section 25‑5 of the Venture Capital Act 2002, starting from the time the investment is made.
However, subparagraph (c)(i) or (ii) does not apply to the unit trust if Industry Innovation and Science Australia so determines under section 25‑10 of the Venture Capital Act 2002.
Note: A company that fails to meet the requirements of this subsection can still be eligible in certain circumstances: see subsection (13).

Predominant activity
 (4) The unit trust must satisfy at least 2 of these requirements:
 (a) more than 75% of the assets (determined by value) that are assets of either:
 (i) the unit trust; or
 (ii) any entity controlled by the unit trust in a way described in section 328‑125 (a controlled entity);
  must be used primarily in activities that are not ineligible activities mentioned in subsection (14) of this section;
 (b) more than 75% of the persons who are employees of either or both of the following:
 (i) the trustee of the unit trust;
 (ii) any one or more of the unit trust's controlled entities;
  must be engaged (as such employees) primarily in activities that are not ineligible activities mentioned in subsection (14) of this section;
 (c) more than 75% of the total assessable income, *exempt income and *non‑assessable non‑exempt income of:
 (i) the unit trust; and
 (ii) each of its controlled entities;
  must come from activities that are not ineligible activities mentioned in subsection (14) of this section.
Note 1: This requirement is ongoing. It is not limited to the circumstances at the