TAXATION ADMINISTRATION ACT 1953

SCHEDULE 1 - COLLECTION AND RECOVERY OF INCOME TAX AND OTHER LIABILITIES  

Note: See section 3AA .

Chapter 2 - Collection, recovery and administration of income tax  

PART 2-5 - PAY AS YOU GO (PAYG) WITHHOLDING  

Division 12 - Payments from which amounts must be withheld  

Subdivision 12-H - Distributions of withholding MIT income  

Operative provisions

SECTION 12-440   TRANSITIONAL - MIT CROSS STAPLE ARRANGEMENT INCOME  

12-440(1)  
This section applies if:


(a) before 27 March 2018, an *Australian government agency:


(i) decided to approve the *acquisition, creation or lease of a facility; and

(ii) publicly announced that decision; and

(iii) took significant preparatory steps to implement that decision; and


(b) either:


(i) a *cross staple arrangement was entered into in relation to the facility before 27 March 2018; or

(ii) it was reasonable on 27 March 2018 to conclude that a cross staple arrangement will be entered into in relation to the facility; and


(c) all the entities that are *stapled entities in relation to the cross staple arrangement already existed before 27 March 2018; and


(d) each entity that is a stapled entity in relation to the cross staple arrangement has made a choice in accordance with subsection (5).

12-440(2)  
This section also applies if:


(a) any of the following applies:


(i) an entity entered into a contract before 27 March 2018 for the *acquisition, creation or lease of a facility;

(ii) an entity owns, or is the lessee of, a facility at a time before 27 March 2018; and


(b) either:


(i) a *cross staple arrangement was entered into in relation to the facility before 27 March 2018; or

(ii) it was reasonable on 27 March 2018 to conclude that a cross staple arrangement will be entered into in relation to the facility; and


(c) all the entities that are *stapled entities in relation to the cross staple arrangement already existed before 27 March 2018; and


(d) each entity that is a stapled entity in relation to the cross staple arrangement has made a choice in accordance with subsection (5).

12-440(3)  
An amount included in the assessable income for an income year of a *managed investment trust is not MIT cross staple arrangement income of the managed investment trust if:


(a) the amount is, or is attributable to, an amount derived, received or made from another entity (the second entity ); and


(b) the amount relates to the facility; and


(c) the second entity is a *stapled entity in relation to the *cross staple arrangement; and


(d) either:


(i) if subparagraph 12-437(2)(a)(i) applies - the amount is *rent from land investment paid from an *operating entity in relation to the cross staple arrangement to the managed investment trust; or

(ii) if subparagraph 12-437(2)(a)(ii) applies - the amount is attributable to rent from land investment paid from an operating entity in relation to the cross staple arrangement to an *asset entity in relation to the cross staple arrangement; and


(e) the time when the amount was derived, received or made by the managed investment trust meets the requirements in subsection (4).

12-440(4)  
The time meets the requirements in this subsection if:


(a) where the facility to which the *cross staple arrangement relates is not an *economic infrastructure facility - the time is before 1 July 2031 and before the later of:


(i) 1 July 2026; and

(ii) the end of the period of 7 years beginning on the earliest day on which an asset that is part of that facility is first put to use for the purpose of producing assessable income; or


(b) where the facility to which the cross staple arrangement relates is an economic infrastructure facility - the time is before 1 July 2039 and before the later of:


(i) 1 July 2034; and

(ii) the end of the period of 15 years beginning on the earliest day on which an asset that is part of that facility is first put to use for the purpose of producing assessable income.

12-440(5)  
An entity makes a choice in accordance with this subsection if:


(a) the entity makes the choice in the *approved form; and


(b) the entity makes the choice no later than:


(i) 30 June 2019; or

(ii) a later time allowed by the Commissioner; and


(c) the entity gives the choice to the Commissioner within 60 days after the entity makes the choice.

12-440(6)  
The choice cannot be revoked.




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