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Source test

An individual passes the source test in relation to a trust or company if:

  • the individual has transferred property or services to the entity after 7.30 pm, by standard time in the Australian Capital Territory, on 9 May 2000, and
  • the underlying transfer was made for no consideration or for a consideration less than the arm's length amount in relation to the underlying transfer.



An arm's length amount in relation to an actual transfer of property or services to a company or a trust, means the amount that the company or trust could reasonably be expected to have been required to pay to obtain the property or the services concerned from the transferor under a transaction where the parties to the transaction are dealing with each other at arm's length in relation to the transaction.

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