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 12-449   TRANSITIONAL - MIT AGRICULTURAL INCOME  

12-449(1)  
This section applies if:


(a) an amount (the relevant amount ) is included in the assessable income for an income year of a *managed investment trust in relation to the income year (worked out for the purposes of determining the trust ' s *net income, or in the case of an *AMIT, the trust ' s total assessable income, for the income year); and


(b) the relevant amount would be *MIT agricultural income (disregarding this section) of the managed investment trust because it is attributable to an asset that is *Australian agricultural land for rent; and


(c) the managed investment trust derived, received or made the relevant amount before 1 July 2026; and


(d) if the managed investment trust derived, received or made the relevant amount because the managed investment trust held the asset:


(i) the managed investment trust held the asset just before 27 March 2018; or

(ii) before 27 March 2018, the managed investment trust entered into a contract for the *acquisition or lease of the asset; and


(e) if the managed investment trust derived, received or made the relevant amount because another entity (the second entity ) held the asset:


(i) the second entity held the asset just before 27 March 2018; or

(ii) before 27 March 2018, the second entity entered into a contract for the acquisition or lease of the asset; and


(f) if paragraph (e) applies - immediately before 27 March 2018, the managed investment trust held a *total participation interest (the pre-announcement TPI ) of greater than nil in the second entity.

12-449(2)  
If paragraph (1)(d) applies, treat the relevant amount as not being *MIT agricultural income of the *managed investment trust.

12-449(3)  
If paragraph (1)(e) applies, treat part of the relevant amount as not being *MIT agricultural income of the *managed investment trust.

12-449(4)  
That part is equal to the relevant amount multiplied by the fraction worked out under subsections (5) and (6).

12-449(5)  
If the *total participation interest (the post-announcement TPI ) held by the *managed investment trust in the second entity at the end of the most recent income year ending before it derived, received or made the relevant amount exceeds the pre-announcement TPI, work out that fraction by dividing:


(a) the pre-announcement TPI;

by:


(b) the post-announcement TPI.

12-449(6)  
Otherwise, the fraction is 1.




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