SOCIAL SECURITY ACT 1991 - SECT 1207P Designated private trusts
SOCIAL SECURITY ACT 1991 - SECT 1207P
Designated private trusts(1) For the purposes of this Part, a trust is a designated private trust unless:
(a) all of the following conditions are satisfied:
(i) the trust is a fixed trust;
(ii) the units in the trust are held by 50 or more persons;
(iii) the trust was not created, continued in existence or operated under a scheme that was entered into or carried out for the sole or dominant purpose of enabling any individual or individuals to avoid the application of this Part and/or Division 11A of Part IIIB of the Veterans' Entitlements Act; or
(b) the trust is a complying superannuation fund (see subsection (3)); or
(c) the trust is an excluded trust (see subsection (4)).
(2) For the purposes of subparagraph (1)(a)(ii), an individual and his or her associates are taken to be one person.
Complying superannuation funds
(3) For the purposes of this section, a fund is a complying superannuation fund at a particular time if:
(a) that time occurs during a particular tax year of the fund; and
(b) under section 45 of the Superannuation Industry (Supervision) Act 1993 , the fund is a complying superannuation fund for the purposes of the Income Tax Assessment Act 1997 in relation to that tax year.
Excluded trusts
(4) The Secretary may, by legislative instrument, declare that each trust included in a specified class of trusts is an excluded trust for the purposes of this section.
(5) The declaration has effect accordingly.
"fixed trust" means a trust where persons have fixed entitlements to all of the income and corpus of the trust.
"income" means income within the ordinary meaning of that expression.
"unit" , in relation to a trust, includes a beneficial interest, however
described, in the property or income of the trust.