Document ID: chunk:federal_register_of_legislation:C2025C00014:schedule:2f:p75
Version: federal_register_of_legislation:C2025C00014
Segment Type: schedule
Provision Reference: sch 2F (pt 75/79)
Character Range: 2387706–2390233

held trust

272‑125  Wholesale widely held trust
 (1) Subject to Subdivision 272‑J, a unit trust is a wholesale widely held trust at a particular time (the test time) if:
 (a) it is an unlisted widely held trust at the test time; and
 (b) it is not an unlisted very widely held trust at the test time; and
 (c) at least 75% of its units are held at the test time by one or more qualifying holders (see subsection (2)); and
 (d) at the test time, all of its units carry the same rights; and
 (e) if at the test time its units are redeemable, they are redeemable for a price determined on the basis of its net asset value, according to Australian accounting principles; and
 (f) the amount subscribed for units in the trust by each person to whom units have been issued was at least $500,000; and
 (g) at the test time, the unit trust engages only in qualifying activities (see subsection (3)).

Qualifying holder
 (2) Each of the following is a qualifying holder:
 (a) a listed widely held trust;
 (b) an unlisted very widely held trust;
 (c) a life assurance company;
 (e) a fund that is a complying approved deposit fund in relation to the year of income in which the test time occurs;
 (f) a fund that is a complying superannuation fund in relation to the year of income in which the test time occurs;
 (g) a trust that is a pooled superannuation trust in relation to the year of income in which the test time occurs.

Qualifying activity
 (3) A qualifying activity is an activity that:
 (a) is an investment or business activity; and
 (b) is conducted in accordance with the trust instrument or deed, and any prospectus, of the trust; and
 (c) is conducted at arm's length.

Subdivision 272‑J—Kind of trust can be affected by ownership by higher level trust

272‑127  Kind of trust can be affected by ownership by higher level trust
 (1) If:
 (a) apart from this Subdivision, a trust is an unlisted widely held trust, an unlisted very widely held trust or a wholesale widely held trust; and
 (b) each of one or more trusts of a higher level (see subsection (3)) has, directly or indirectly, fixed entitlements to all of the income and capital of the trust;
the trust is instead a trust of the same kind (see subsection (2)) as the trust of the highest level.
 (2) For the purposes of this Subdivision, trusts are of the following kinds:
 (a) unlisted widely held trust;
 (b) unlisted very widely held trust;
 (c) wholesale widely held trust;
 (d) listed widely held trust.
 (3) The kinds of trust are allocated levels in the