Document ID: chunk:federal_register_of_legislation:C2025C00029:section:10:p5
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 10 (pt 5/8)
Character Range: 2131602–2134228

with at least 300 *members from being a *discount capital gain, unless subsection (3) or (6) applies in relation to the company.

Capital gain from interest in fixed trust with 300 beneficiaries
 (2) Section 115‑45 does not prevent a *capital gain from a *CGT event happening to an interest in a trust from being a *discount capital gain if:
 (a) entities have *fixed entitlements to all of the income and capital of the trust; and
 (b) the trust has at least 300 beneficiaries; and
 (c) neither subsection (4) nor subsection (6) applies in relation to the trust.

No discount capital gain if ownership is concentrated
 (3) Section 115‑45 may prevent a *capital gain from a *share in a company from being a *discount capital gain if an individual owns, or up to 20 individuals own between them, directly or indirectly (through one or more interposed entities) and for their own benefit, *shares in the company:
 (a) carrying *fixed entitlements to:
 (i) at least 75% of the company's income; or
 (ii) at least 75% of the company's capital; or
 (b) carrying at least 75% of the voting rights in the company.
 (4) Section 115‑45 may prevent a *capital gain from an interest in a trust from being a *discount capital gain if an individual owns, or up to 20 individuals own between them, directly or indirectly (through one or more interposed entities) and for their own benefit, interests in the trust:
 (a) carrying *fixed entitlements to:
 (i) at least 75% of the trust's income; or
 (ii) at least 75% of the trust's capital; or
 (b) if beneficiaries of the trust have a right to vote in respect of activities of the trust—carrying at least 75% of those voting rights.
 (5) Subsections (3) and (4) operate as if all of these were a single individual:
 (a) an individual, whether or not the individual holds *shares in the company or interests in the trust (as appropriate);
 (b) the individual's *associates;
 (c) for any *shares or interests in respect of which other individuals are nominees of the individual or of the individual's associates—those other individuals.

No discount capital gain if rights can be varied to concentrate ownership
 (6) Section 115‑45 may prevent a *capital gain from a *share in a company, or from an interest in a trust, from being a *discount capital gain if, because of anything listed in subsection (7), it is reasonable to conclude that the rights attaching to any of the *shares in the company or interests in the trust (as appropriate) can be varied or abrogated in such a way that subsection (3) or (4) would be satisfied.
 (7) These are the things:
 (a) any provision in the constituent