Commonwealth Consolidated Acts

INCOME TAX ASSESSMENT ACT 1936 - SECT 525

             (1)  If:

                     (a)  at the end of the notional accounting period of a FIF, or the end of the notional accounting periods of FIFs, that ended in the year of income a taxpayer had an interest in that FIF or interests in those FIFs; and

                     (b)  apart from this Division the operative provision would apply to the taxpayer in relation to that FIF or those FIFs in respect of that notional accounting period or those notional accounting periods; and

                     (c)  the value or the sum of the values of the taxpayer's interest or interests in that FIF or those FIFs at the end of that year of income did not exceed 10% of the sum of the values of all the taxpayer's interests in FIFs at the end of that year of income (other than interests in relation to which the operative provision does not apply to the taxpayer in respect of notional accounting periods that ended in that year of income because of Division 2 or 11);

the operative provision does not apply to the taxpayer in relation to the FIF or FIFs referred to in paragraph (a) in respect of the notional accounting period or notional accounting periods referred to in that paragraph.

             (2)  For the purposes of subsection (1), the value at the end of the year of income of a person's interests in a FIF is taken to be:

                     (a)  the cost incurred by the person in acquiring the interest in the FIF; or

                     (b)  the market value of the interest in the FIF at the end of the year of income;

whichever is the greater amount.