Document ID: chunk:federal_register_of_legislation:C2025C00029:section:7:p23
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 7 (pt 23/58)
Character Range: 2356018–2358841

as in force just before the commencement of Schedule 6 to the Statute Update (Smaller Government) Act 2018) or related facilities (within the meaning of section 93M of that Act), or both;
 (e) making investments, whether made directly or indirectly, that are directed to deriving income in the nature of interest, rents, dividends, royalties or lease payments.
For the purposes of this subsection, activities that are ancillary or incidental to a particular activity are taken to form part of that activity.
Note: Under Division 362 in Schedule 1 to the Taxation Administration Act 1953, Industry Innovation and Science Australia can make rulings that activities, or classes of activities, are not ineligible activities.
 (14A) However, none of the following activities are ineligible activities mentioned in subsection (14):
 (a) developing technology for use in relation to an activity referred to in paragraph (14)(b), (c) or (e);
 (b) an activity that is ancillary or incidental to the activity of developing technology referred to in paragraph (a) of this subsection;
 (c) an activity referred to in paragraph (14)(b), (c) or (e) that is the subject of a finding in force under section 118‑432 at the time the investment is made.
 (14B) Subsection (14A) does not apply in circumstances prescribed by regulations made for the purposes of this subsection.

Industry Innovation and Science Australia discretion
 (15) A unit trust is taken to meet the requirements of subsection (4) even if it fails to satisfy at least 2 of the requirements in that subsection if *Industry Innovation and Science Australia determines under section 25‑15 of the Venture Capital Act 2002 that:
 (a) the unit trust's primary activity is not an ineligible activity mentioned in subsection (14); and
 (b) the failure is temporary and did not exist at the time the investment referred to in subsection (1) was made and, if it has been disposed of, when it was disposed of.

Activities disregarded in applying the predominant activity test
 (15A) If *Industry Innovation and Science Australia determines under section 25‑15 of the Venture Capital Act 2002 that:
 (a) the activities of the controlled entity of a unit trust are complementary to one or more of the activities, of the unit trust or its other controlled entities, that are not ineligible activities mentioned in subsection (14) of this section; and
 (b) the activities that, taken together, constitute the principal activities of the unit trust and all of its controlled entities are not ineligible activities mentioned in subsection (14) of this section; and
 (c) in all the circumstances, it is appropriate that, for a period specified in the determination, the activities of the controlled entity are disregarded when applying subsection (4) of this section to the unit trust;
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