Document ID: chunk:federal_register_of_legislation:C2024C00814:section:3:p1
Version: federal_register_of_legislation:C2024C00814
Segment Type: section
Provision Reference: s 3 (pt 1/3)
Character Range: 4043–6673

3  Interpretation
 (1) In this Act:
agreement means a treaty or other agreement described in section 3AAA (about current agreements) or 3AAB (about agreements for earlier periods).
Note: Most of the conventions, protocols and other agreements described in these sections are set out in the Australian Treaty Series. In 2023, the text of an agreement in the Australian Treaty Series was accessible through the Australian Treaties Library on the AustLII website (www.austlii.edu.au).
Assessment Act means the Income Tax Assessment Act 1936 or the Income Tax Assessment Act 1997.
Australian tax means:
 (a) income tax imposed as such by an Act; or
 (b) fringe benefits tax imposed by the Fringe Benefits Tax Act 1986.
Note: This includes Medicare levy (see subsection (10)).
foreign tax means tax, other than Australian tax, which is the subject of an agreement.
prescribed trust estate, in relation to a year of income, means a trust estate that is a public trading trust, within the meaning of Division 6C of Part III of the Income Tax Assessment Act 1936, in relation to the year of income.
 (2) For the purpose of this Act and the Assessment Act, a reference in an agreement to profits of an activity or business shall, in relation to Australian tax, be read, where the context so permits, as a reference to taxable income derived from that activity or business.
 (2A) After the commencement of this subsection, a reference in an agreement to income from shares, or to income from other rights participating in profits, does not include a reference to a return on a debt interest (as defined in Subdivision 974‑B of the Income Tax Assessment Act 1997).
 (3) For the purposes of this Act, an amount of income derived by a person, being income other than interest or royalties, shall be deemed to be income attributable to interest or royalties, as the case may be:
 (a) if the person derived the amount of income by reason of being beneficially entitled to an amount representing the interest or royalties; or
 (b) if the person derived the amount of income as a beneficiary in a trust estate and the amount of income can be attributed, directly or indirectly, to the interest or royalties or to an amount that is to be deemed, by any application or successive applications of this subsection, to be an amount of income attributable to the interest or royalties.
 (4) Where a beneficiary in a trust estate, other than a trust estate that is a prescribed trust estate, in relation to the year of income, is presently entitled to income of the trust estate, that income shall, for the purposes of this Act, be deemed to be an amount