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Appendix 2: Business activities that are not eligible activities

Last updated 26 May 2005

Schedule 4 - Business activities that are not eligible activities under Division 3 of Part XI

  • Banking (see note) and the provision of finance
  • Financial intermediation services
  • Investment in tainted assets, or tainted commodity investments, within the meaning of section 317 (see note)
  • Life insurance business (see note)
  • General insurance business (see note)
  • Management of funds (see note 2)
  • Certain activities in connection with real property other than in connection with construction (see note)

Note: Although in this schedule banking, investment, life insurance business, general insurance business and activities in connection with real property are referred to as not being eligible activities, under subsection 496(2) the exemptions provided for by Divisions 4, 5, 6 and 7 of Part XI are not affected.

Note 2: New legislation has changed the FIF rules with application from 1 July 2003. One of these changes is a measure to exclude from operation of the FIF rules certain investments in FIFs that primarily engage in managing funds. Previously, the FIF rules required the taxpayer to attribute amounts in respect of such investments in the current year. The new measure deletes the activity category 'Management of funds' from the Schedule 4 listing.

For more information, phone the Business Tax Reform Infoline on 13 28 66.

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