Document ID: chunk:federal_register_of_legislation:F2025C00115:reg:6:p22
Version: federal_register_of_legislation:F2025C00115
Segment Type: reg
Provision Reference: reg 6 (pt 22/38)
Character Range: 810702–813376

government authority as a security in which an investment is a designated investment for the purposes of a Part of Schedule 2.
 (2) The Minister may so specify a security if and only if:
 (a) an investment in the security matures in not less than 4 years from its date of issue; and
 (b) repayment of principal is guaranteed by the issuing authority; and
 (c) an investment in the security cannot be transferred or redeemed before maturity except by operation of law or under other conditions acceptable to the Minister; and
 (d) investment in the security is open to the general public at commercially competitive rates of return; and
 (e) the Minister is satisfied that the Commonwealth will not be exposed to any liability as a result of an investment in the security by a person.

5.19B  Complying investment
 (1) An investment by a person (the investor) is a complying investment if all of the requirements in this regulation are met.

Description
 (2) The investment must consist of one or more of the following:
 (a) an investment in a government bond (however described) of the Commonwealth, a State or Territory; or
 (b) a direct investment in an Australian proprietary company that meets the following requirements:
 (i) the company is not listed on an Australian stock exchange;
 (ii) the company has not been established wholly or substantially for the purpose of creating compliance with this paragraph;
 (iii) the investment is an ownership interest in the company;
 (c) an investment in a managed fund (directly or through an investor directed portfolio service) for a purpose specified by the Minister in an instrument, in writing, for this paragraph.
 (3) The funds used to make the investment are:
 (a) unencumbered; and
 (b) lawfully acquired.

Investor
 (4) The investor must be an individual.
 (5) The investor must make the investment:
 (a) personally; or
 (b) with the investor's spouse or de facto partner; or
 (c) by means of a company that has issued shares and in which:
 (i) the investor holds all of the issued shares; or
 (ii) the investor and the investor's spouse or de facto partner hold all of the issued shares; or
 (d) by means of a trust:
 (i) that is lawfully established; and
 (ii) of which:
 (A) the investor is the sole trustee; or
 (B) the investor and the investor's spouse or de facto partner are the sole trustees; and
 (iii) of which:
 (A) the investor is the sole beneficiary; or
 (B) the investor and the investor's spouse or de facto partner are the sole beneficiaries.
 (6) If:
 (a) an investor withdraws money from a complying investment, or cancels the investment; and
 (b) the investor makes an investment of at least the