Chapter 3: Exemptions

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

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To allow the foreign investment fund (FIF) measures to focus on cases that provide the greatest opportunity for deferral of Australian tax, there are a number of exemptions from FIF taxation:

• attributable taxpayers under the CFC or the transferor trust measures
• an interest in an active business
• an interest in a foreign bank
• an interest in a foreign holding company of a foreign bank
• an interest in a foreign life insurance company
• an interest in a foreign holding company of a foreign life insurance company
• an interest in a foreign general insurance company
• an interest in a foreign holding company of a foreign general insurance company
• an interest in a foreign company engaged in certain real property activities
• an interest in a foreign holding company of a foreign company engaged in certain real property activities
• an interest of $50,000 or less
• visitors to Australia
• an interest in an employer-sponsored foreign superannuation fund
• an interest in a FIF that is trading stock
• an interest in a multi-industry foreign company
• underwriting members of Lloyd's
• a balanced investment portfolio in FIFs
• an interest in certain FIFs resident in the United States
• resident complying superannuation entities and interests in certain assets of life insurance companies and certain fixed trusts.