Tax Laws Amendment (2008 Measures No. 5) Act 2008 (145 of 2008)

Schedule 5   Eligible investment business rules

Income Tax Assessment Act 1936

10   Transitional

(1) Subsections 102MB(2), (3) and (4), and section 102MC, of the Income Tax Assessment Act 1936 do not apply to a unit trust for the application year if the trustee of the trust chooses that those provisions are not to apply.

(2) A choice the trustee can make under subitem (1) must be made by the day the trustee lodges the trustee's return of income for the application year.

(3) The way the trustee prepares the trustee's return of income for the application year is sufficient evidence of the making of the choice.

Example: A unit trust that would cease to be a public trading trust because of the safe harbour rule could make a choice under this provision so that it is taxed as a public trading trust for the application year.