Document ID: chunk:federal_register_of_legislation:C2025C00029:section:3:p31
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 3 (pt 31/80)
Character Range: 4418242–4420961

the end of the income year.
Note: The AMIT must give each member an AMMA statement for the income year no later than 3 months after the end of the income year (see section 276‑455).

Subdivision 276‑J—Debt‑like trust instruments

Guide to Subdivision 276‑J

276‑500  What this Subdivision is about
      A debt‑like trust instrument in an AMIT is treated as a debt interest in the AMIT. A distribution in relation to the instrument is treated as interest for the purposes of provisions relating to interest withholding tax, and may be treated as a deduction in working out the trust components of the AMIT.

Table of sections

Operative provisions
276‑505 Meaning of debt‑like trust instrument
276‑510 Debt‑like trust instruments treated as debt interests etc.
276‑515 Distribution on debt‑like trust instrument could be deductible in working out trust components

Operative provisions

276‑505  Meaning of debt‑like trust instrument
 (1) An instrument that gives rise to an interest in a trust is a debt‑like trust instrument in relation to the trust if:
 (a) the amount of any distribution relating to the interest is fixed, at the time the interest is created, by reference to the amount subscribed for the interest; and
 (b) any distribution relating to the interest is made solely at the discretion of the trustee of the trust; and
 (c) rights to distributions of capital or profits arising from all interests in the trust that are in the same *class as the interest, rank above all such rights arising from other interests in the trust (other than those covered under subsection (2)) if:
 (i) the trust ceases to exist; or
 (ii) where the trust is a *managed investment scheme—the scheme is under administration or is being wound up; and
 (d) in a case where, in relation to a particular period, the trustee of the trust does not make a distribution relating to the interest—making a distribution of any of the following kinds, in relation to that period, is prohibited by the constituent documents of the trust:
 (i) a distribution relating to any membership interest in the trust;
 (ii) a distribution relating to a membership interest in another entity, if that interest is stapled together with a membership interest in the trust.
 (2) This subsection covers an interest in the trust that:
 (a) is not a *membership interest in the trust; or
 (b) satisfies the requirements in paragraphs (1)(a) and (b).

276‑510  Debt‑like trust instruments treated as debt interests etc.
 (1) For the purposes of this Act:
 (a) treat a *debt‑like trust instrument in relation to an *AMIT as a *debt interest in the AMIT; and
 (b) treat a distribution on a debt‑like trust instrument in relation to an AMIT as a cost incurred