Document ID: chunk:federal_register_of_legislation:C2016C00501:clause:5_4:p2
Version: federal_register_of_legislation:C2016C00501
Segment Type: clause
Provision Reference: sch 5 cl 4 (pt 2/7)
Character Range: 20308–22892

made—it satisfies the licensing requirements in section 12‑403 in relation to the income year.

Trading unit trust or other trust carrying on trading business etc. cannot be managed investment trust
 (2) A trust is covered by this subsection in relation to an income year if:
 (a) in the case of a unit trust—the trust is a trading trust for the purposes of Division 6C in Part III of the Income Tax Assessment Act 1936 in relation to the income year; or
 (b) in any other case—the trust at any time in the income year:
 (i) carried on a trading business (within the meaning of that Division); or
 (ii) controlled, or was able to control, directly or indirectly, the affairs or operations of another person in respect of the carrying on by that other person of a trading business (within the meaning of that Division).

Crown entities, etc.
 (3) For the purposes of paragraphs (1)(e) and (f), treat an entity as registered under section 601EB of the Corporations Act 2001 at the time the payment is made if at that time the trust is operated by:
 (a) an entity that would, but for subsection 5A(4) of that Act (about the Crown not being bound by Chapter 6CA or 7 of that Act), be required under that Act to be a financial services licensee (within the meaning of section 761A of that Act) whose licence would cover operating such a managed investment scheme; or
 (b) an entity that:
 (i) is a *wholly‑owned subsidiary of an entity of a kind mentioned in paragraph (a); and
 (ii) would, but for any instrument issued by ASIC under that Act that has effect in relation to the entity and operation of the scheme mentioned in paragraph 12‑400(1)(d), be required under that Act to be a financial services licensee (within the meaning of section 761A of that Act) whose licence would cover operating such a managed investment scheme.

Start‑up and wind‑down phases
 (4) Treat the requirements in paragraphs (1)(f) and (g) as being satisfied if:
 (a) the trust is created during the period:
 (i) starting 6 months before the start of the income year; and
 (ii) ending at the end of the income year; or
 (b) the trust ceases to exist during the income year, and was a *managed investment trust (disregarding paragraph (a)) in relation to the previous income year.

12‑401  Trusts with wholesale membership
  A trust is covered by this section at a time if, at that time:
 (a) the trust is not required to be registered in accordance with section 601ED of the Corporations Act 2001 (whether or not it is actually so registered) because of subsection 601ED(2) of that Act (no product disclosure