• Associates

    Attention

    Warning:

    This information may not apply to the current year. Check the content carefully to ensure it is applicable to your circumstances.

    End of attention

    An associate includes:

    • your spouse, but does not include your spouse who, although legally married to you, has been living separately and apart from you for at least 12 months
    • your child, whether or not the child lives with you
    • your stepchild who lives with you
    • your partner in a partnership and a spouse or child of the partner
    • a trustee of a trust, other than a public unit trust or an eligible Part IX entity - broadly, a superannuation fund, an approved deposit fund or a pooled superannuation trust - if you or an associate benefit under the trust, and
    • a company in which you and your associates have a majority voting interest or which is sufficiently influenced by your and your associates.

    If you are under 18 years of age, your associates include, in addition to the above:

    • your parents, and
    • your brother or sister. [section 491]

    Example
    Exemption for an interest of $A50,000 or less

    A

    B

     

    Direct interests of taxpayer and associates in FIFs and FLPs

    Direct interests of taxpayer and associates in resident public unit trusts

    Total A & B

    Does small investor exemption apply to direct interests in FIFs and FLPs?

    Does small investor exemption apply to interests in resident public unit trusts?

    $30,000

    $15,000

    $45,000

    Yes

    Yes

    $26,000

    $25,000

    $51,000

    Yes

    Yes

    $50,000

    $1,000

    $51,000

    Yes

    No - taxpayer's share of net income of resident public unit trust includes amounts which relate to FIF income of the trust.

    nil

    $60,000

    $60,000

    Yes

    No - taxpayer's share of the net income of the resident public unit trust includes those amounts which relate to FIF income of the trust.

    Last modified: 27 May 2005QC 17512