Document ID: chunk:federal_register_of_legislation:C2025C00029:section:2:p6
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 2 (pt 6/8)
Character Range: 7289106–7291900

those directions, instructions or wishes are, or might reasonably be expected to be, communicated directly or through interposed entities.
However, this subsection does not apply to the first entity in its capacity as the *responsible entity of a *registered scheme (see subsection (2A)).
 (1A) Subsection (1) does not apply if the other entity is any of the following:
 (a) a trustee of a *complying superannuation entity (other than a *self managed superannuation fund);
 (b) *wholly‑owned subsidiary of a complying superannuation entity (other than a self managed superannuation fund).
 (2) An entity (the first entity) that is an individual is an associate entity of another entity at a particular time if, at that time:
 (a) the first entity is an *associate of that other entity; and
 (b) the first entity:
 (i) is accustomed or under an obligation (whether formal or informal); or
 (ii) might reasonably be expected;
  to act in accordance with the directions, instructions or wishes of that other entity in relation to the first entity's financial affairs, whether those directions, instructions or wishes are, or might reasonably be expected to be, communicated directly or through interposed entities.
 (2A) An entity (the first entity), in its capacity as the *responsible entity of a *registered scheme at a particular time, is an associate entity of another entity at that time if the first entity, in that capacity, is an *associate of that other entity at that time and at least one of the following paragraphs applies at that time:
 (a) that other entity holds an *associate interest of 50% or more in the registered scheme (see subsections (4) to (8));
 (b) that other entity holds an associate interest of 20% or more in the registered scheme and the first entity, in that capacity, is accustomed or under an obligation (whether formal or informal), or might reasonably be expected, to act in accordance with the directions, instructions or wishes of that other entity in relation to:
 (i) the distribution or retention of the profits of the registered scheme; or
 (ii) the financial policies relating to the assets, *debt capital or *equity capital of the registered scheme;
  whether those directions, instructions or wishes are, or might reasonably be expected to be, communicated directly or through interposed entities.
Note: The first entity, in another capacity, may also be an associate entity of an entity under another provision of this section (see also section 960‑100).
 (2B) For the purposes of Subdivision 820‑AA, and of sections 820‑910, 820‑915 and 820‑920, if the first entity mentioned in subsection (1) or (2A) is a trust (other than a *public trading trust) or a partnership:
 (a) treat the reference in paragraph (1)(a) or (2A)(a) to 50% as instead being