Part 3-3 inserted by No 46 of 1998.

Div 152 inserted by No 165 of 1999 (as amended by No 173 of 2000).

S 152-42 repealed by No 41 of 2011, s 3 and Sch 5 item 99, effective 27 June 2011. For application provisions see note under s 152-78 . S 152-42 formerly read:

SECTION 152-42 Trustee of discretionary trust may nominate beneficiaries to be controllers of trust  
152-42(1)
This section applies for the purposes of determining, for the purposes of subparagraph 152-40(1)(a)(iii) or paragraph 152-40(1)(b) , whether an entity is *connected with you.

Note:

This affects whether a CGT asset that you own satisfies the active asset test.

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History

S 152-42(1) amended by No 42 of 2009, s 3 and Sch 2 item 13, by substituting " subparagraph 152-40(1)(a)(iii) " for " subparagraph 152-40(1)(a)(ii) " , effective 23 June 2009. For application provision and transitional provision relating to choice, see note under s 152-10(1) .

152-42(2)
The trustee of a discretionary trust may nominate not more than 4 beneficiaries as being controllers of the trust for an income year (the relevant income year ) for which the trustee did not make a distribution of income or capital if the trust had a *tax loss, or no taxable income, for that year.
152-42(3)
A nomination under subsection (2) has effect as if each nominated beneficiary controlled the trust for the relevant income year in a way described in section 328-125 .

Note:

This means each nominated beneficiary is connected with the trust.

152-42(4)
A nomination under subsection (2) must:

(a) be in writing; and

(b) be signed by the trustee and by each nominated beneficiary.

S 152-42 inserted by No 80 of 2007 , s 3 and Sch 4 item 21, applicable to CGT events happening in the 2007-08 income year and later income years.