Superannuation Legislation Amendment Act (No. 2) 1999 (96 of 1999)
Schedule 2 Non-arm's length trust distributions etc. to superannuation and similar funds
Income Tax Assessment Act 1936
2 At the end of section 273
(6) Income derived by the entity in the capacity of beneficiary of a trust estate (other than by virtue of holding a fixed entitlement to the income) is special income of the entity.
(7) Income derived by the entity in the capacity of beneficiary of a trust estate by virtue of holding a fixed entitlement to the income is special income of the entity if:
(a) the entity acquired the fixed entitlement under an arrangement (see subsection (8)), or the income was derived under an arrangement, some or all of the parties to which were not dealing with each other at arms length in relation to the arrangement; and
(b) the amount of the income is greater than might have been expected to have been derived by the entity if those parties had been dealing with each other at arms length in relation to the arrangement.
(8) In subsection (7), arrangement means:
(a) any agreement, arrangement, understanding, promise or undertaking, whether express or implied and whether or not enforceable, or intended to be enforceable, by legal proceedings; and
(b) any scheme, plan, proposal, action, course of action or course of conduct.