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  • Division 6C amounts

    Main category of eligible investment business

    Select the main category of eligible investment business from the category list.

    See section 102M of the ITAA 1936 for the meaning of eligible investment business. Choose the most appropriate category from the list in section 102M.

    Total amount of eligible investment business income

    Enter the total amount of eligible investment business income.

    Application of the safe harbour rules

    Was the AMIT a public unit trust as defined in section 102P of the ITAA 1936?

    The definition of public unit trust in section 102P has been amended for income years starting on or after 1 July 2016. A trust is not a public unit trust merely because 20% or more of the interests in the trust are held by complying superannuation entities or tax exempt entities that are entitled to a refund of franking credits. From income years starting on or after 1 July 2016, some AMITs are no longer public unit trusts.

    The following two safe harbour questions need to be considered:

    • If the AMIT is a public unit trust - in considering whether the AMIT is not a public trading trust
    • If the AMIT is not a public unit trust - in considering whether the AMIT meets the MIT criteria to not be a trading trust

    If the AMIT is not a public unit trust as defined in section 102P, the trustees need to consider the safe harbour questions.

    • These questions are relevant to Managed Investment Trust (MIT) criteria (even if in that case the trust is not public trading trust).

    Did the AMIT rely on the rental safe harbour rule in 102MB(2)?

    Subsection 102MB(2) provides a 25% safe harbour allowance for non-rental, non-trading income from investments in land.

    If the AMIT relied on this safe harbour answer Yes. Otherwise answer No.

    Did the AMIT rely on the 2% non-eligible investment business safe harbour in 102MC of the ITAA 1936?

    Section 102MC provides a 2% safe harbour allowance at the whole of trust level for non-trading income to reduce the scope for inadvertent minor breaches of the Division 6C eligible investment business rules.

    If the AMIT relied on this safe harbour answer Yes. Otherwise answer No.

    If you answered Yes, select the percentage of income from activities other than an eligible investment business:

    • 0% to 0.50%
    • Over 0.50% up to 1.00%
    • Over 1.00% up to 1.50%
    • Over 1.50% up to 2.00%.
      Last modified: 09 Sep 2020QC 62633