Document ID: chunk:federal_register_of_legislation:C2025C00029:section:12:p42
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 12 (pt 42/43)
Character Range: 4051076–4053746

trustee. It is treated (but not for the purposes of the PAYG withholding provisions mentioned in paragraph 235‑815(2)(b)) as if it had been paid directly to the investor.
 (2) An act done in relation to an *instalment trust asset of an *instalment trust by the trustee of the trust is treated as if the act had been done by the investor (instead of by the trustee).
Example: A trustee disposes of the asset. Any capital gain or loss is made by the investor, not by the trustee.
 (3) The investor is treated as having the *instalment trust asset in the same circumstances as the investor actually has the interest in the *instalment trust.
 (4) Without limiting subsection (3), the circumstances include:
 (a) whether the interest is held on capital account or on revenue account; and
 (b) whether the interest is held as a joint tenant or tenant in common.
 (5) Any consequence arising under the *GST Act for the trustee of the *instalment trust, as a result of anything done in relation to the *instalment trust asset, is treated as if it had arisen for the investor (instead of for the trustee), even if that consequence would not have arisen had the thing been done by or to the investor.
Example: If the trustee has a net input tax credit under the GST Act, the investor must apply the credit to reduce the investor's cost base for the instalment trust asset (even if the investor is not registered or required to be registered for GST purposes): see section 103‑30.

235‑825  Meaning of instalment trust and instalment trust asset
 (1) A trust is an instalment trust if:
 (a) the trust is covered by section 235‑830 (about instalment trust arrangements) and satisfies the requirements in section 235‑835 (about requirements for underlying investments to be listed or widely held); or
 (b) the trust is covered by section 235‑840 (about limited recourse borrowings by *regulated superannuation funds).
 (2) An instalment trust asset is an asset that is, or is part of, the underlying investment of an *instalment trust (as mentioned in section 235‑830 or 235‑840, as the case requires).

235‑830  What trusts are covered—instalment trust arrangements
 (1) This section covers a trust if, under an *arrangement:
 (a) an entity (the investor) makes a *borrowing, or is provided with credit; and
 (b) to secure the borrowing or provision of credit, the trustee of the trust acquires an asset or assets (the underlying investment); and
 (c) the investor has a beneficial interest in the underlying investment as the sole beneficiary of the trust; and
 (d) for a provision of credit—the credit was provided to the investor to acquire the asset, or one of the assets, that