Document ID: chunk:federal_register_of_legislation:C2025C00029:section:2:p35
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 2 (pt 35/41)
Character Range: 4326818–4329476

of entities that had become a *member of the trust because a financial product or a financial service was provided to, or acquired by, the entity as a retail client (within the meaning of the Corporations Act 2001) is no more than 20; and
 (c) the entities mentioned in paragraph (b) have a total *MIT participation interest in the trust of no more than 10%.

275‑20  Widely‑held requirements—ordinary case
 (1) The trust satisfies the requirements in this subsection in relation to the income year if, at the time the payment mentioned in paragraph 275‑10(3)(a) is made, the trust has at least 25 *members.
 (2) The trust satisfies the requirements in this subsection in relation to the income year if, at the time the payment mentioned in paragraph 275‑10(3)(a) is made:
 (a) units in the trust are listed for quotation in the official list of an *approved stock exchange in Australia; or
 (b) the trust has at least 50 *members (ignoring objects of a trust).
 (3) For the purposes of subsection (1) and paragraph (2)(b), determine the number of *members of the trust as follows:
 (a) first, by applying the rules in subsection (5), identify:
 (i) the members of the trust that are not entities covered by subsection (4); and
 (ii) the members of the trust that are entities covered by subsection (4);
 (b) next, work out the number of members mentioned in subparagraph (a)(i);
 (c) next:
 (i) work out the *MIT participation interest in the trust of each entity mentioned in subparagraph (a)(ii); and
 (ii) for each of those entities, multiply the total of its MIT participation interest in the trust by 50 and round the result upwards to the nearest whole number; and
 (iii) work out the total of the results of subparagraph (ii) for all of those entities;
 (d) next, work out the total of the results of paragraphs (b) and (c).
 (4) This subsection covers the following kinds of entity:
 (a) a *life insurance company;
 (b) a *foreign life insurance company that is regulated under a *foreign law;
 (c) a *complying superannuation fund, a *complying approved deposit fund or a *foreign superannuation fund, being a fund that has at least 50 *members;
 (d) a *pooled superannuation trust that has at least one member that is a complying superannuation fund that has at least 50 members;
 (e) a *managed investment trust in relation to the income year;
 (f) an entity:
 (i) that is recognised under a foreign law as being used for collective investment by pooling the contributions of its members as consideration to acquire rights to benefits produced by the entity; and
 (ii) that has at least 50 members; and
 (iii) the contributing members of which do