INCOME TAX ASSESSMENT ACT 1936
A closely held trust is:
(a) a trust where an individual has, or up to 20 individuals have between them, directly or indirectly, and for their own benefit, fixed entitlements to a 75% or greater share of the income, or a 75% or greater share of the capital, of the trust; or
(b) a discretionary trust;
except where the trust is an excluded trust.102UC(2) Trustees of discretionary trusts treated as individuals.
(a) a trustee of a discretionary trust holds a fixed entitlement to a share of the income or capital of the trust mentioned in that paragraph directly or indirectly; and
(b) no person holds that fixed entitlement directly or indirectly through the discretionary trust;
the trustee is taken to hold that fixed entitlement directly or indirectly as an individual and for the individual ' s own benefit.102UC(3) Individuals treated as single individual.
(a) an individual, whether or not the individual holds fixed entitlements directly in the trust mentioned in that paragraph;
(b) the individual ' s relatives;
(c) in relation to any fixed entitlements in respect of which other individuals are nominees of the individual or of the individual ' s relatives - those other individuals. 102UC(4) Definitions.
In this section:
(a) a trust to which paragraph (b), (c) or (d) of the definition of excepted trust in section 272-100 in Schedule 2F applies; or
(b) a unit trust whose units are listed on the stock market operated by ASX Limited; or
(c) a family trust; or
(d) a trust in relation to which an interposed entity election has been made and is in force in accordance with section 272-85 in Schedule 2F ; or
(e) a trust that is covered by subsection 272-90(5) in Schedule 2F .
[ CCH Note: Definition of " excluded trust " will be amended by No 95 of 2019, s 3 and Sch 4 items 1 and 2, by substituting " Limited. " for " Limited; or " in para (b) and repealing para (c) to (e), effective 1 January 2020 and applicable in relation to years of income starting on or after 1 July 2019.]