A company [2] is a designated private company [2] if:
Once it has been determined that the company is a designated private company, then the issue of who controls the assets and income of the company and the percentage of control [2] to be attributed to the individual(s) can be decided.
More ? [3]
Non-designated private companies are assessed under the pre 1 January 2002 private company rules.
More ? [4]
Assessing the Income & Assets from Private Companies pre 01/01/2002
Section 10.3.3 [8]
Legislation Library - Commission Determinations
Means Test Treatment of Private Companies – Excluded Companies – Declaration 2001 [9]
Company has the same meaning as in the Income Tax Assessment Act 1997.
According to Section 52ZZA of the VEA, a company is a designated private company at a particular time if the company:
gross operating revenue is less than $25 million;
gross assets at the end of the financial year are less than $12.5 million;
the company has fewer than 50 employees at the end of the financial year, or
and the company is not an excluded company [2].
Financial year, in relation to a company, means:
Commission may determine in writing that a company having been included in a specified class of companies is a declared private company for the purposes of section 52ZZA [11] of the VEA and is therefore a DPC [2].
An excluded company is a company 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.
Links
[1] https://clik.dva.gov.au/user/login?destination=node/16387%23comment-form
[2] https://clik.dva.gov.au/%23
[3] https://clik.dva.gov.au/book/export/html/16387#tgt-cspol_part10_ftn418
[4] https://clik.dva.gov.au/book/export/html/16387#tgt-cspol_part10_ftn419
[5] https://clik.dva.gov.au/compensation-and-support-policy-library/part-10-types-income-and-assets/103-business-structures-and-trusts/1036-attribution-guidelines-private-trusts-private-companies-01012002/controlled-private-company
[6] https://clik.dva.gov.au/compensation-and-support-policy-library/part-10-types-income-and-assets/103-business-structures-and-trusts/1037-attribution-percentage-derivation-and-attribution-period-01012002/attribution-percentage
[7] https://clik.dva.gov.au/book/export/html/16387#ref-cspol_part10_ftn418
[8] https://clik.dva.gov.au/compensation-and-support-policy-library/part-10-types-income-and-assets/103-business-structures-and-trusts/1033-assessing-income-assets-private-companies-pre-01012002
[9] https://clik.dva.gov.au/legislation-library
[10] https://clik.dva.gov.au/book/export/html/16387#ref-cspol_part10_ftn419
[11] http://clik.dva.gov.au/legislation-library