Document ID: chunk:federal_register_of_legislation:C2025C00180:clause:1_2:p6
Version: federal_register_of_legislation:C2025C00180
Segment Type: clause
Provision Reference: sch 1 cl 2 (pt 6/18)
Character Range: 794925–797632

during the current period; and
 (b) the trust's *instalment income for the current period; and
 (c) any other relevant circumstances.

Exception for corporate unit trusts and public trading trusts
 (4) Your instalment income for the current period does not include an amount for a trust if the trustee is liable to be assessed, and to pay tax, under section 102S of the Income Tax Assessment Act 1936 for the income year that is or includes that period.
Note: Your instalment income will still include a distribution by the trust that is ordinary income. See section 45‑120.

Exception for certain resident unit trusts
 (5) Your instalment income for the current period does not include an amount for a trust under subsection (1) if the conditions in either subsection 45‑285(1) or (2) are satisfied for you for that trust for that period.
Note: Your instalment income will instead include a distribution by the trust: see section 45‑285.

Exception for trusts whose beneficiary is absolutely entitled
 (6) Your instalment income for the current period does not include an amount for a trust under subsection (1) if, throughout the current period:
 (a) the trustee of the trust did not have any active duties to perform in the management of the trust (other than the duty to deal with the trust income and capital in accordance with any requests made or directions given by the beneficiary or beneficiaries); and
 (b) if there was only one beneficiary, the beneficiary:
 (i) was absolutely entitled to the trust assets; and
 (ii) had a vested and indefeasible interest in any trust income arising from time to time; and
 (c) if there was more than one beneficiary, each beneficiary:
 (i) was absolutely entitled to that beneficiary's interest in the trust assets; and
 (ii) had a vested and indefeasible interest in a proportion of any trust income arising from time to time, being a proportion that corresponded to the beneficiary's proportional interest in the trust capital.
Instead, your instalment income for the current period includes the following amount:

45‑285  Instalment income includes distributions by certain resident unit trusts
 (1) Your instalment income for a period includes trust income or trust capital that a unit trust distributes to you, or applies for your benefit, during that period if:
 (a) the unit trust is a resident unit trust (within the meaning of section 102Q of the Income Tax Assessment Act 1936) for the income year of the trust that is or includes that period; and
 (b) throughout that period:
 (i) any of the units in the trust were listed for quotation in the official list of a stock exchange in Australia or elsewhere; or
 (ii) any of the units in the trust were