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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, More ?
- 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. More ?
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 decidedMore ?
Legislation Library – Commission Determinations
Means Means Test Treatment of Private Companies – Excluded Companies – Declaration 2001
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.