Document ID: chunk:federal_register_of_legislation:C2025C00180:clause:1_6:p42
Version: federal_register_of_legislation:C2025C00180
Segment Type: clause
Provision Reference: sch 1 cl 6 (pt 42/63)
Character Range: 443132–445782

year.

12‑446  Meaning of MIT trading trust income
 (1) This section applies if:
 (a) an amount is included in the assessable income for an income year of a *managed investment trust in relation to the income year (worked out for the purposes of determining the trust's *net income, or in the case of an *AMIT, the trust's total assessable income, for the income year); and
 (b) the amount mentioned in paragraph (a) is, or is attributable to, an amount derived, received or made from another entity (the second entity); and
 (c) the amount mentioned in paragraph (a) is not an amount mentioned in paragraph 12‑405(1)(a), (b), (c), (d) or (e).
 (2) The amount is MIT trading trust income of the *managed investment trust if:
 (a) the managed investment trust holds a *total participation interest in the second entity of greater than nil; and
 (b) the amount arises because of that total participation interest; and
 (c) the second entity:
 (i) is a trading trust for the purposes of Division 6C of Part III of the Income Tax Assessment Act 1936 in relation to the income year; or
 (ii) is a partnership or a trust that is not a unit trust, but would be such a trading trust in relation to the income year if it were a unit trust throughout the income year; and
 (d) the second entity is not a *public trading trust in relation to the income year.
 (3) The amount is not MIT trading trust income of the *managed investment trust under subsection (2) to the extent that it is attributable to a *capital gain made from *CGT event E4 or *CGT event E10.

12‑447  Transitional—MIT trading trust income
 (1) This section applies if:
 (a) an amount (the relevant amount) included in the assessable income for an income year of a *managed investment trust is *MIT trading trust income of the managed investment trust (disregarding this section); and
 (b) immediately before 27 March 2018, the managed investment trust held a *total participation interest (the pre‑announcement TPI) of greater than nil in the second entity mentioned in subsection 12‑446(1) (the second entity); and
 (c) the relevant amount was derived, received or made by the managed investment trust before 1 July 2026.
 (2) Treat part of the relevant amount as not being *MIT trading trust income of the *managed investment trust.
 (3) That part is equal to the relevant amount multiplied by the fraction worked out under subsections (4) and (5).
 (4) If the *total participation interest (the post‑announcement TPI) held by the *managed investment trust in the second entity at the end of the most recent income year ending before it derived, received or made the relevant amount exceeds