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Designated private trust
Determining a designated private trust
A trust is a designated private trust unless:
- all three of the following sub-conditions are satisfied:
- the trust is a fixed trust,
- the units in the trust are held by 50 or more persons, and
- the trust was not created or operated under a scheme that was entered into to gain a Veterans' Affairs or Social Security advantage, or
- the trust is a complying superannuation fund, or
- the trust is an excluded trust.
Legislation Library – Commission Determinations
Once it has been determined that the trust is a designated private trust, then the issue of who controls the assets and income of the trust and the percentage of control to be attributed to the individual(s) can be decided
Units in relation to a trust, include a beneficial interest, however described, in the property or income of the trust.
A scheme means:
- any agreement, arrangement, understanding, promise or undertaking, whether express or implied and whether or not enforceable, or intended to be enforceable, by legal proceedings, or
- any scheme, plan, proposal, action, course of action or course of conduct, whether there are 2 or more parties or only one party involved.
A fund is a complying superannuation fund for the purposes of section 52ZZB of the VEA, at a particular time if:
- that time occurs during a particular tax year of the fund, and
- under section 45 of the Superannuation Industry (Supervision) Act 1993
- the fund is a complying superannuation fund for the purposes of Part IX of the Income Tax Assessment Act 1936 in relation to that tax year.
An excluded trust is a trust declared in writing by Commission to be excluded from the private trust and company provisions.
Control includes control as a result of, or by means of, trusts, agreements, arrangements, understandings and practices, whether or not having legal or equitable force and whether or not based on legal or equitable rights.