Chapter 3: Exemptions

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

To allow the 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
• temporary residents
• an interest in an employer-sponsored foreign superannuation fund
• an interest in a FIF that is trading stock
• an interest in a foreign company principally engaged in several activities
• an interest in a foreign holding company of a foreign mixed activity company
• an interest in a Premium Trust Fund by an underwriting member 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.