Document ID: chunk:federal_register_of_legislation:C2025C00029:section:2:p13
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 2 (pt 13/18)
Character Range: 2831674–2834207

a CGT concession stakeholder of the trust; and
 (ii) interests in any other trust that are covered by subsection (3), (3A) or (3B);
 (d) financial instruments (such as loans, debentures, bonds, promissory notes, futures contracts, forward contracts, currency swap contracts and a right or option in respect of a share, security, loan or contract);
 (e) an asset whose main use by you is to *derive interest, an annuity, rent, royalties or foreign exchange gains unless:
 (i) the asset is an intangible asset and has been substantially developed, altered or improved by you so that its *market value has been substantially enhanced; or
 (ii) its main use for deriving rent was only temporary.
Example: A company uses a house purely as an investment property and rents it out. The house is not an active asset because the company is not using the house in the course of carrying on a business. If, on the other hand, the company ran the house as a guest house the house would be an active asset because the company would be using it to carry on a business and not to derive rent.
Note: The meaning of connected with is affected by section 152‑78.
 (4A) For the purposes of paragraph (4)(e), in determining the main use of an asset:
 (a) disregard any personal use or enjoyment of the asset by you; and
 (b) treat any use by your *affiliate, or an entity that is *connected with you, as your use.
Note: The meaning of connected with is affected by section 152‑78.
 (5) This subsection applies to a trust if:
 (a) interests in the trust are listed for quotation in the official list of an *approved stock exchange; or
 (b) the trust has more than 50 *members, unless the trust is a discretionary trust or a trust where at least one of the following conditions is met during an income year:
 (i) no more than 20 persons held, or had the right to acquire or become the holders of, *membership interests representing at least 75% of the value of the membership interests in the trust;
 (ii) if there are *trust voting interests in the trust—at least 75% of the trust voting interests in the trust was capable of being controlled by no more than 20 persons;
 (iii) at least 75% of the amount of any distribution made by the trustee during the year was made to no more than 20 persons;
 (iv) if no distribution was made by the trustee during the year—the Commissioner is of the opinion that, if a distribution had been made during the year, at least 75% of the distribution would have been made to no more than 20 persons.

152‑45  Continuing