Income Tax Assessment Act 1936


Division 6D - Provisions relating to certain closely held trusts  

Subdivision B - Interpretation  


A closely held trust is:

(a) a trust where an individual has, or up to 20 individuals have between them, directly or indirectly, and for their own benefit, fixed entitlements to a 75% or greater share of the income, or a 75% or greater share of the capital, of the trust; or

(b) a discretionary trust;

except where the trust is an excluded trust.

102UC(2)   Trustees of discretionary trusts treated as individuals.  

For the purposes of paragraph (1)(a), if:

(a) a trustee of a discretionary trust holds a fixed entitlement to a share of the income or capital of the trust mentioned in that paragraph directly or indirectly; and

(b) no person holds that fixed entitlement directly or indirectly through the discretionary trust;

the trustee is taken to hold that fixed entitlement directly or indirectly as an individual and for the individual ' s own benefit.

102UC(3)   Individuals treated as single individual.  

For the purposes of paragraph (1)(a), all of the following are taken to be a single individual:

(a) an individual, whether or not the individual holds fixed entitlements directly in the trust mentioned in that paragraph;

(b) the individual ' s relatives;

(c) in relation to any fixed entitlements in respect of which other individuals are nominees of the individual or of the individual ' s relatives - those other individuals.

102UC(4)   Definitions.  

In this section:

discretionary trust
means a trust that is not a fixed trust within the meaning of section 272-65 in Schedule 2F .

excluded trust

(a) a trust to which paragraph (b), (c) or (d) of the definition of excepted trust in section 272-100 in Schedule 2F applies; or

(b) a unit trust whose units are listed on the stock market operated by ASX Limited.

(c) - (e) (Repealed by No 95 of 2019)

fixed entitlement
has the meaning given by sections 272-5 , 272-10 , 272-15 and 272-40 in Schedule 2F .

has the meaning given by section 272-20 in Schedule 2F .


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