Overseas managed investments
Deeming applies to managed investments held overseas.
Non-exempt funeral bonds
Deeming applies to funeral bonds that are not exempt assets.
Deeming applied to private unit trusts
The following table describes the application of deeming to private unit trusts:
If the private unit trust is... | then it is... |
a managed investment | subject to deeming. |
not a managed investment, because it does not meet all of the criteria for a managed investment. For example, if an investor in a private unit trust exercises control over the management of the invested assets then it is not a managed investment. |
|
Deeming applied to ostrich and emu farming investments
The following table describes the application of deeming to ostrich and emu farming investments.
What constitutes the different types of ostrich and emu farming investments
9.5.6/Description - Other Managed Investments
Investment Type | Application of Deeming |
Speculative | Investments of this type are not financial investments and therefore, not subject to deeming. For assessment purposes:
|
Share farming scheme | Share farming investments are considered to be businesses, therefore assessment is made of gross income from the business, less allowable deductions. An arrangement is subject to deeming if it is established that the:
|
Managed investment scheme | These schemes are managed investments and are subject to deeming. |
Deeming applied to afforestation projects
The following table describes the application of deeming to afforestation projects:
If the investor is... | Then... |
Carrying on a business alone or with other participants, with a direct investment in an identifiable area of land and associated commodities | assessment is made of gross income from the business, less allowable deductions. |
Not carrying on a business | the arrangement must be examined to establish whether it is a managed investment. NOTE: While forestry investments may be marketed as being managed investments, and may be assessed as managed investments for taxation purposes by the ATO, they have been found in the past to not satisfy the VEA requirements. Careful examination of the prospectus is required because if the investment remains in the name of the individual investor, with the investor being able to exercise a degree of effective control over the management of the invested asset, the investment is not considered a managed investment. Managed investments are subject to deeming. |
Lifetime Income Streams
Asset-tested lifetime income streams purchased on or after 1 July 2019 which were purchased with non-superannuation monies, are considered managed investments and deemed before the assessment day (prior to payments commencing or the owner reaching pension age). After the assessment day, they are no longer considered managed investments and other rules apply, see 10.5.4 Means Test Assessment of Lifetime Income Streams and Glossary term 'Assessment Day'.