Document ID: chunk:federal_register_of_legislation:F2025C00115:reg:6:p23
Version: federal_register_of_legislation:F2025C00115
Segment Type: reg
Provision Reference: reg 6 (pt 23/38)
Character Range: 813134–815914

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 (b) the investor makes an investment of at least the value of the withdrawn money or cancelled investment in one or more other investments mentioned in subregulation (2); and
 (c) no more than 30 days passes between the events mentioned in paragraphs (a) and (b);
the investment is taken not to have ceased to be a complying investment during the period between the events mentioned in paragraphs (a) and (b).

5.19C  Complying significant investment

Definition
 (1) An investment by a person (the investor) is a complying significant investment if all of the requirements of this regulation are met.
 (2) If an investment (the overall investment) is based on one or more other investments, this regulation (and any instrument under subregulation (6)) applies equally to the overall investment and each investment on which the overall investment is based.

Investment requirements
 (3) All funds used to make the investment must be unencumbered and lawfully acquired.
 (4) The investment:
 (a) must be lawful; and
 (b) must not form the basis for security or collateral for a loan.
 (5) The investment, and the means by which the investment is made:
 (a) must be of a kind permitted by the requirements specified in an instrument under subregulation (6); and
 (b) must comply with any requirements specified in an instrument under subregulation (6).
 (6) The Minister may, by legislative instrument, specify requirements for the purposes of subregulation (5).

Investment switching periods
 (7) Subregulation (8) applies in relation to a period (the switching period):
 (a) beginning when the investor withdraws funds from the investment, or cancels the investment; and
 (b) ending when the investor reinvests the withdrawn funds, or the funds used to make the cancelled investment.
 (8) If the switching period is of no more than 30 days duration, the investment is taken not to have ceased to be a complying significant investment during the switching period only because of the event mentioned in paragraph (7)(a).

Investor requirements
 (9) The investor must be an individual.
 (10) 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 to which the following applies:
 (i) the trust is lawfully established;
 (ii) the investor is the sole trustee or the investor and the investor's