Document ID: chunk:federal_register_of_legislation:F2024C00969:reg:18:p1
Version: federal_register_of_legislation:F2024C00969
Segment Type: reg
Provision Reference: reg 18 (pt 1/2)
Character Range: 19277–21996

18  Foreign‑owned investment funds

Application for investment fund to be declared a substantially Australian investment fund
 (1) A trustee or manager of an investment fund may, in writing, apply to the Minister for a declaration that the investment fund is a substantially Australian investment fund.

Eligibility for declaration
 (2) An investment fund is eligible to be declared a substantially Australian investment fund if the investment fund is a fund in which a beneficial interest in less than 40% of the capital, and 40% of the income, is held by persons who are foreign persons.
 (3) For the purposes of subsection (2), a person is not taken to be a foreign person if:
 (a) the person holds a beneficial interest in the investment fund; and
 (b) the person is the trustee of another investment fund; and
 (c) the beneficial interest exists solely because the person is the trustee of the other investment fund; and
 (d) the other investment fund is a fund in which a beneficial interest in less than 40% of the capital, and 40% of the income, is held by persons who are foreign persons.

Minister to decide if investment fund to be declared a substantially Australian investment fund
 (4) On application under subsection (1), the Minister must:
 (a) if reasonably satisfied that the investment fund is eligible to be declared a substantially Australian investment fund:
 (i) make the declaration; and
 (ii) within 7 days of making the declaration, give a copy of the declaration to the applicant and publish a notice of the declaration on the Department's website; or
 (b) if not so satisfied—refuse to make the declaration.

Notice of refusal decision to be given
 (5) The Minister must, within 7 days of deciding to refuse to make a declaration, give the applicant written notice stating:
 (a) the reasons for the decision; and
 (b) the applicant's right to have the decision reviewed by the Administrative Review Tribunal.
Note: See section 28 for review of decisions.

Prescribed interest and prescribed person
 (6) If a declaration by the Minister that an investment fund is a substantially Australian investment fund is in force:
 (a) an interest in a share is an interest of a prescribed kind if the interest exists solely as a result of an action by the interest‑holder in the interest‑holder's capacity as trustee or manager of the fund; and
 (b) the interest‑holder is a prescribed person.

Minister to be advised of adverse facts or circumstances
 (7) If:
 (a) a declaration by the Minister that an investment fund is a substantially Australian investment fund is in force; and
 (b) the interest‑holder is, or becomes, aware of the existence of a fact or circumstance that, had it existed and been