Income Tax Assessment Act 1997

Part 3-25 inserted by No 56 of 2010, s 3 and Sch 3 item 4, effective 3 June 2010.

Div 275 heading substituted by No 53 of 2016, s 3 and Sch 4 item 1, effective 5 May 2016. For application provision, see note under Div 276 heading. The heading formerly read:

Division 275 - Australian managed investment trusts

Div 275 inserted by No 56 of 2010, s 3 and Sch 3 item 4, effective 3 June 2010. No 56 of 2010, s 3 and Sch 3 item 10 contains the following application provision:

Application provision  
(1)
The amendments made by this Schedule apply in relation to CGT events that happen on or after the start of the 2008-09 income year.

(2)
Despite subitem (1), subsections 275-100(5) and (6) of the Income Tax Assessment Act 1997 as inserted by this Schedule (and any other provision inserted by this Schedule, to the extent that it relates to those subsections) apply in relation to acquisitions of assets that happen on or after the start of the 2008 - 09 income year.

(3)
Despite subitem (1), section 275-120 of the Income Tax Assessment Act 1997 as inserted by this Schedule (and any other provision inserted by this Schedule, to the extent that it relates to that section) applies in relation to:

(a) disposals of assets; and

(b) cessations of ownership of assets; and

(c) other realisations of assets;

that happen on or after the commencement of this item.

(4)
Despite subitem (1), Subdivision 275-C of the Income Tax Assessment Act 1997 as inserted by this Schedule (and any other provision inserted by this Schedule, to the extent that it relates to that Subdivision) applies in relation to:

(a) entitlements to distributions that arise on or after the commencement of this item; and

(b) CGT events that happen on or after the commencement of this item.

(5)
Despite subitem (1), section 45-286 in Schedule 1 to the Taxation Administration Act 1953 as inserted by this Schedule (and any other provision inserted by this Schedule, to the extent that it relates to that section) applies in relation to distributions or applications of benefits that are made on or after the commencement of this item.

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Subdiv 275-A substituted by No 53 of 2016, s 3 and Sch 4 item 3, effective 5 May 2016. For application provision, see note under Div 276 heading. Subdiv 275-A formerly read:

Subdivision 275-A - Meaning of managed investment trust

SECTION 275-5 SECTION 275-5 Treatment of trading trusts etc.  
275-5
For the purposes of this Division, treat a trust in the same way as a *managed investment trust in relation to an income year if it would be a managed investment trust in relation to the income year if paragraph 12-400(2)(a) in Schedule 1 to the Taxation Administration Act 1953 were disregarded.

Note:

If a trading trust is treated as a managed investment trust for the purposes of this Division for an income year, sections 275-100 (CGT to be primary code for calculating MIT gains or losses) and 275-120 (revenue account treatment) will not apply to the trust for the year (see subsections 275-100(1), 275-110(1) and 275-120(1)).

SECTION 275-10 SECTION 275-10 Trust with investment management activities outside Australia  
275-10
For the purposes of this Division, treat a trust in the same way as a *managed investment trust in relation to an income year if it would be a managed investment trust in relation to the income year if paragraph 12-400(1)(c) in Schedule 1 to the Taxation Administration Act 1953 were disregarded. SECTION 275-15 Every member of trust is a managed investment trust  
275-15(1)
For the purposes of this Division, treat a trust in the same way as a *managed investment trust in relation to an income year if:

(a) the condition in paragraph 12-400(1)(a) in Schedule 1 to the Taxation Administration Act 1953 is satisfied; and

(b) either:

(i) the only *member of the trust is an entity covered by subsection 12-402(3) of that Schedule (other than an entity mentioned in paragraph (e) of that subsection); or

(ii) the only member of the trust is an entity treated in the same way as a managed investment trust in relation to the income year because of this Subdivision; and

(c) the trust satisfies the licensing requirements in section 12-403 of that Schedule in relation to the income year.

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History

S 275-15(1) amended by No 90 of 2010, s 3 and Sch 5 item 2, by substituting paras (a), (b) and (c) for paras (a) and (b), effective 29 June 2010. For application provision, see note under s 275-5. Paras (a) and (b) formerly read:

(a) the condition in item 1 of the table in subsection 12-400(1) in Schedule 1 to the Taxation Administration Act 1953 is satisfied; and

(b) every *member of the trust is a managed investment trust in relation to the income year (or a trust that is treated in the same way as a managed investment trust in relation to the income year through the operation of this Subdivision).

275-15(2)
A requirement in paragraph (1)(a) is satisfied if, and only if, it is satisfied:

(a) at the time the trustee of the trust makes the first *fund payment in relation to the income year; or

(b) if the trustee does not make such a payment in relation to the income year - at both the start and the end of the income year.
SECTION 275-20 No fund payment made in relation to the income year  
275-20
For the purposes of this Division, treat a trust in the same way as a *managed investment trust in relation to an income year if:

(a) the trustee of the trust does not make a *fund payment in relation to the income year; and

(b) the trust would be a managed investment trust in relation to the income year (or a trust that would be treated in the same way as a managed investment trust in relation to the income year through the operation of this Subdivision) if the trustee of the trust had made the first fund payment in relation to the income year on the first day of the income year; and

(c) the trust would be a managed investment trust in relation to the income year (or a trust that would be treated in the same way as a managed investment trust in relation to the income year through the operation of this Subdivision) if the trustee of the trust had made the first fund payment in relation to the income year on the last day of the income year. SECTION 275-30 Temporary circumstances outside the control of the trustee  
275-30
If, apart from a particular circumstance, a trust would be treated under this Subdivision in the same way as a *managed investment trust in relation to an income year, treat the trust in the same way as a managed investment trust in relation to the income year for the purposes of this Division if:

(a) the circumstance is temporary; and

(b) the circumstance arose outside the control of the trustee of the trust; and

(c) it is fair and reasonable to treat the trust as a managed investment trust in relation to the income year, having regard to the following matters:

(i) the matters in paragraphs (a) and (b);

(ii) the nature of the circumstance;

(iii) the actions (if any) taken by the trustee of the trust to address or remove the circumstance, and the speed with which such actions are taken;

(iv) the extent to which treating the trust as a managed investment trust in relation to the income year would increase or reduce the amount of tax otherwise payable by the trustee, the beneficiaries of the trust or any other entity;

(v) any other relevant matter.

SECTION 275-35 Application of subsections 102L(15) and 102T(16)  
275-35
To avoid doubt, subsections 102L(15) and 102T(16) of the Income Tax Assessment Act 1936 do not apply for the purposes of this Division.

Subdiv 275-A inserted by No 56 of 2010, s 3 and Sch 3 item 4, effective 3 June 2010. For application provision, see note under Div 275 heading.

S 275-5 substituted by No 53 of 2016, s 3 and Sch 4 item 3, effective 5 May 2016. For application provision, see note under Div 276 heading. For former wording, see note under Subdiv 275-A heading.

S 275-5 inserted by No 90 of 2010, s 3 and Sch 5 item 1, effective 29 June 2010. No 90 of 2010 (as amended by No 12 of 2012), s 3 and Sch 5 items 6 to 8, contains the following application provision:

6 Application provision  
(1)
Subject to this item, the amendments made by this Schedule apply to fund payments made in relation to the first income year starting on or after the first 1 July after the day on which this Act receives the Royal Assent and later income years.

(2)
Subject to items 7 and 8, the amendments made by this Schedule apply in relation to Division 275 of the Income Tax Assessment Act 1997 in the same way as the amendments made by Schedule 3 to the Tax Laws Amendment (2010 Measures No. 1) Act 2010 apply in relation to that Division.

(3)
Subject to items 7 and 8, the amendments made by this Schedule apply in relation to Subdivision 126-G of the Income Tax Assessment Act 1997 in relation to CGT events happening on or after 1 November 2008.
7 Transitional - trusts that were managed investment trusts etc. for income year starting before 26 May 2010  
(1)
This item applies if:

(a) apart from this item, a trust is not a managed investment trust in relation to an income year; and

(b) the income year is the 2010-11, 2011-12, 2012-13, 2013-14, 2014-15, 2015-16 or 2016-17 income year.

(1A)
Without limiting subitem (1), this item also applies for the purposes of Division 275 of the Income Tax Assessment Act 1997 (Australian managed investment trusts) if:

(a) apart from this item, a trust is not a managed investment trust in relation to an income year; and

(b) the income year is the 2008-09 or 2009-10 income year.

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History

S 7(1A) inserted by No 12 of 2012, s 3 and Sch 6 item 190, effective 21 March 2012.

(2)
The trust is a managed investment trust in relation to the income year if:

(a) the trust is a managed investment trust (within the meaning of section 12-400 in Schedule 1 to the Taxation Administration Act 1953 immediately before the commencement of this Schedule) in relation to the income year; and

(b) in relation to an income year starting before 26 May 2010, the trust:

(i) was a managed investment trust (within that meaning); or

(ii) would have been a managed investment trust (within that meaning) if the trustee of the trust had made the first fund payment in relation to the income year in that income year and before 26 May 2010.

8 Transitional - substituted accounting periods  
(1)
This item applies if the first income year mentioned in subitem 6(1) starts after the first 1 July after the day on which this Act receives the Royal Assent. [ CCH Note: Royal assent occurred 29 June 2010.]

(2)
For the purposes of working out liabilities to pay amounts in accordance with Subdivision 840-M of the Income Tax Assessment Act 1997 , apply the following rules:

(a) treat the income year of an entity (the actual income year ) ending immediately before that first income year as being the following 2 income years of the entity:

(i) an income year (the first notional income year ) that starts at the start of the actual income year and ends immediately before that 1 July;

(ii) an income year (the second notional income year ) that starts on that 1 July and ends at the end of the actual income year;

(b) do not apply the amendments made by this Schedule in determining whether the entity is a managed investment trust in relation to the first notional income year;

(c) apply the amendments made by this Schedule in determining whether the entity is a managed investment trust in relation to the second notional income year;

(d) for the purposes of determining rates of taxation applicable for the purposes of that Subdivision, treat the first notional income year and the second notional income year as both being the income year following the first income year mentioned in subparagraph 4(1)(a)(i) of the Income Tax (Managed Investment Trust Withholding Tax) Act 2008 .