Document ID: chunk:federal_register_of_legislation:C2025C00134:section:71e:p2
Version: federal_register_of_legislation:C2025C00134
Segment Type: section
Provision Reference: s 71E (pt 2/2)
Character Range: 519429–521286

investment is the first post‑test time investment in respect of which the sum of the amounts referred to in paragraphs (a) and (b) exceeds the amount of the principal—subsection (4) applies to the investment.

Reduced value for the purposes of working out value of in‑house assets
 (4) For the purposes of working out the formula component Number of whole dollars in value of in‑house assets of the fund under section 75 at the post‑test time, the value of the post‑test time investment at the post‑test time is taken to be the number of whole dollars in the amount worked out as follows:

where:
excess amount means the amount of the excess under subsection (3).
market value of post‑test time investment means the market value of the post‑test time investment as at the post‑test time.
purchase price of post‑test time investment means the purchase price of the post‑test time investment.

Effect of election
 (5) If the trustee, or the trustees, of a fund make an election under paragraph (1)(e) in respect of the post‑test time investments of the fund in an entity, then:
 (a) sections 71A and 71D do not apply, and are taken never to have applied, to any post‑test time investment by the fund in that entity; and
 (b) this section applies, and is taken always to have applied, to any post‑test time investment of the fund in that entity.
Note: This means that if a fund makes an election, this section would apply to all investments in the entity after the test time and before 1 July 2009, and sections 71A and 71D would not apply to such investments.

Application of section to loans
 (6) A reference in this section to an investment in a trust or company is taken to include a reference to a loan to a trust or company. For this purpose, the purchase price of the loan is taken to be the principal of the loan at the time at which the loan was made.