another entity derives or receives the amount from the operating entity:

in the income year; and

on or after 27 March 2018; and

the cross staple arrangement was entered into in relation to:

(i) a facility that is covered by Taxation Administration Act 1953 at a time in the income year; orsection 12-439 in Schedule 1 to the

an improvement to a facility that is covered by that section at a time in the income year; and

the other entity is an *asset entity in relation to the cross staple arrangement; and

apart from this subsection, the operating entity could otherwise deduct the amount under this Act; and

the amount is *excepted MIT CSA income of the asset entity for the income year; and

each entity that is a *stapled entity in relation to the cross staple arrangement has made a choice in accordance with subsection (3).

the entity makes the choice in the *approved form; and

the entity makes the choice before:

the start of the income year in which the asset is first put to use; or

a later time allowed by the Commissioner; and

the entity gives the choice to the Commissioner within 60 days after the entity makes the choice.

another entity derives or receives the amount from the operating entity at a time that:

is in the income year; and

is on or after 27 March 2018; and

(iii) meets the requirements in subsection 12-440(4) of Schedule 1 to the Taxation Administration Act 1953; and

the other entity is an *asset entity in relation to the cross staple arrangement; and

apart from this subsection, the operating entity could otherwise deduct the amount under this Act; and

the amount is *excepted MIT CSA income of the asset entity for the income year.

if the address or place for payment of the recipient is in an *information exchange country:

15% for *fund payments (except to the extent mentioned in subparagraph (ii) or (iii)); or

10% for fund payments, to the extent that they are, or are attributable to, fund payments from a *clean building managed investment trust (except to the extent mentioned in subparagraph (iii)); or

30% for fund payments, to the extent that they are attributable to *non-concessional MIT income (see section 12-435); or

if the address or place for payment of the recipient is in an *information exchange country:

15% for *fund payments (except to the extent mentioned in subparagraph (ii) or (iii)); or

10% for fund payments, to the extent that they are, or are attributable to, fund payments from a *clean building managed investment trust (except to the extent mentioned in subparagraph (iii)); or

30% for fund payments, to the extent that they are attributable to *non-concessional MIT income (see section 12-435); or

if the recipient is a resident of an *information exchange country:

15% for *fund payments (except to the extent mentioned in subparagraph (ii) or (iii)); or

10% for fund payments, to the extent that they are, or are attributable to, fund payments from a *clean building managed investment trust (except to the extent mentioned in subparagraph (iii)); or

30% for fund payments, to the extent that they are attributable to *non-concessional MIT income (see section 12-435); or

must specify the extent (if any) to which the payment is, or is attributable to, *non-concessional MIT income (see section 12-435); and

must specify the extent (if any) to which the payment is, or is attributable to, *non-concessional MIT income (see section 12-435); and

*MIT cross staple arrangement income;

*MIT trading trust income;

*MIT agricultural income;

*MIT residential housing income.

at least one of the arrangement entities is an *asset entity; and

at least one of the arrangement entities is an *operating entity; and

the following conditions are satisfied:

(i) one or more other entities (the external entities) each hold a *total participation interest in each arrangement entity;

the sum of the total participation interests held by the external entities in each arrangement entity is 80% or more.

a particular *direct participation interest; or

a particular *indirect participation interest;

an external entity holds *total participation interests in 2 or more arrangement entities; and

either:

(i) the amount (the lowest participation interest amount) of one of those participation interests falls short of the amount of each of the other participation interests; or

(ii) the amount (the lowest participation interest amount) of 2 or more of those participation interests is the same but falls short of the amount of each of the other participation interests.

an amount is included in the assessable income for an income year of a *managed investment trust in relation to the income year (worked out for the purposes of determining the trust’s *net income, or in the case of an *AMIT, the trust’s total assessable income, for the income year); and

(b) the amount mentioned in paragraph (a) is, or is attributable to, an amount derived, received or made from another entity (the second entity); and

(c) the amount mentioned in paragraph (a) is not an amount mentioned in paragraph 12-405(1)(a), (b), (c), (d) or (e).

either:

the *managed investment trust is an *asset entity in relation to the income year and is a *stapled entity in relation to a *cross staple arrangement; or

the second entity is an asset entity in relation to the income year and is a stapled entity in relation to a cross staple arrangement; and

either:

if subparagraph (a)(i) applies—the second entity is an *operating entity in relation to the income year and is a stapled entity in relation to the cross staple arrangement; or

(ii) if subparagraph (a)(ii) applies—another entity (the third entity) is an operating entity in relation to the income year and is a stapled entity in relation to the cross staple arrangement; and

either:

if subparagraph (a)(i) applies—the amount is derived, received or made by the managed investment trust from the second entity; or

if subparagraph (a)(ii) applies—the amount is attributable to an amount derived, received or made by the second entity from the third entity.

(a) the amount is derived, received or made by a *stapled entity in relation to the *cross staple arrangement from an entity that is not a stapled entity in relation to the cross staple arrangement;

the amount mentioned in paragraph (a) is *rent from land investment.

attributable to a facility, or an improvement to a facility; and

referable to a time in the income year when the facility, or the improvement to the facility, is covered by section 12-439.

an *asset entity in relation to the income year mentioned in paragraph (1)(a) makes a *capital gain because an *operating entity in relation to the income year *acquires an asset from the asset entity; and

the asset entity and the operating entity are *stapled entities in relation to the *cross staple arrangement.

the amount is *MIT cross staple arrangement income for the income year of an *asset entity in relation to the *cross staple arrangement; and

the MIT cross staple arrangement income of the asset entity for the previous income year does not exceed 5% of the amount mentioned in subsection (3).

if the *asset entity is not an *AMIT for the income year—the assessable income of the asset entity for the previous income year (worked out for the purposes of determining the *net income of the asset entity for the income year); or

(b) if the asset entity is an AMIT for the income year—the total assessable income (as mentioned in subsection 276-265(2) of the Income Tax Assessment Act 1997) of the asset entity for the previous income year.

treat references in this section to the previous income year as instead being references to the income year; and

treat references in this section to the *MIT cross staple arrangement income of the asset entity as instead being references to a reasonable estimate of the MIT cross staple arrangement income of the asset entity; and

treat references in this section to the assessable income of the asset entity as instead being references to a reasonable estimate of the assessable income of the asset entity; and

treat references in this section to the total assessable income of the asset entity as instead being references to a reasonable estimate of the total assessable income of the asset entity.

the facility is covered by an approval of the Treasurer under this section that is in force at that time; and

that time is no later than the end of the period of 15 years beginning on the day on which an asset that is part of the facility is first put to use.

the improvement to the facility is covered by an approval of the Treasurer under this section that is in force at that time; and

that time is no later than the end of the period of 15 years beginning on the day on which an asset that is part of the facility is first put to use after it has been improved under the improvement.

the facility is an *economic infrastructure facility;

in the case of an application in respect of a facility:

the estimated capital expenditure on the facility is $500 million or more; and

the facility is yet to be constructed; and

the facility will significantly enhance the long-term productive capacity of the economy; and

approving the facility is in the national interest;

in the case of an application in respect of an improvement to a facility:

the estimated capital expenditure on the improvement is $500 million or more; and

the improvement is yet to be constructed; and

the improvement will significantly enhance the long-term productive capacity of the economy; and

approving the improvement is in the national interest.

transport infrastructure;

energy infrastructure;

communications infrastructure;

water infrastructure.

must be in writing; and

must specify the facility, or the improvement, that is approved; and

must specify the date on which the approval comes into force; and

may contain any other information that the Treasurer considers appropriate.

before 27 March 2018, an *Australian government agency:

decided to approve the *acquisition, creation or lease of a facility; and

publicly announced that decision; and

took significant preparatory steps to implement that decision; and

either:

a *cross staple arrangement was entered into in relation to the facility before 27 March 2018; or

it was reasonable on 27 March 2018 to conclude that a cross staple arrangement will be entered into in relation to the facility; and

all the entities that are *stapled entities in relation to the cross staple arrangement already existed before 27 March 2018; and

each entity that is a stapled entity in relation to the cross staple arrangement has made a choice in accordance with subsection (5).

any of the following applies:

an entity entered into a contract before 27 March 2018 for the *acquisition, creation or lease of a facility;

an entity owns, or is the lessee of, a facility at a time before 27 March 2018; and

either:

a *cross staple arrangement was entered into in relation to the facility before 27 March 2018; or

it was reasonable on 27 March 2018 to conclude that a cross staple arrangement will be entered into in relation to the facility; and

all the entities that are *stapled entities in relation to the cross staple arrangement already existed before 27 March 2018; and

each entity that is a stapled entity in relation to the cross staple arrangement has made a choice in accordance with subsection (5).

(a) the amount is, or is attributable to, an amount derived, received or made from another entity (the second entity); and

the amount relates to the facility; and

the second entity is a *stapled entity in relation to the *cross staple arrangement; and

either:

if subparagraph 12-437(2)(a)(i) applies—the amount is *rent from land investment paid from an *operating entity in relation to the cross staple arrangement to the managed investment trust; or

if subparagraph 12-437(2)(a)(ii) applies—the amount is attributable to rent from land investment paid from an operating entity in relation to the cross staple arrangement to an *asset entity in relation to the cross staple arrangement; and

the time when the amount was derived, received or made by the managed investment trust meets the requirements in subsection (4).

(a) where the facility to which the *cross staple arrangement relates is not an *economic infrastructure facility—the time is before 1 July 2031 and before the later of:

1 July 2026; and

the end of the period of 7 years beginning on the earliest day on which an asset that is part of that facility is first put to use for the purpose of producing assessable income; or

where the facility to which the cross staple arrangement relates is an economic infrastructure facility—the time is before 1 July 2039 and before the later of:

1 July 2034; and

the end of the period of 15 years beginning on the earliest day on which an asset that is part of that facility is first put to use for the purpose of producing assessable income.

the entity makes the choice in the *approved form; and

the entity makes the choice no later than:

30 June 2019; or

a later time allowed by the Commissioner; and

the entity gives the choice to the Commissioner within 60 days after the entity makes the choice.

a *managed investment trust in relation to an income year derives, receives or makes an amount of *excepted MIT CSA income for the income year; and

if the amount is excepted MIT CSA income because of subsection 12-440(3)—paragraph 12-440(4)(b) applies (15 year concession); and

(c) the amount of excepted MIT CSA income is, or is attributable to, *rent from land investment under a lease (the cross staple lease) entered into by:

(i) the *asset entity mentioned in paragraph 12-437(2)(a) (the relevant asset entity); and

(ii) the *operating entity mentioned in paragraph 12-437(2)(b) (the relevant operating entity).

subsection 12-437(5);

subsection 12-440(3).

subsection 12-437(5);

subsection 12-440(3).

the amount mentioned in subsection 12-441(1) is *excepted MIT CSA income because of subsection 12-440(3); and

the cross staple lease was entered into before 27 March 2018; and

the cross staple lease, or associated documents, specified any of the following before 27 March 2018:

the amount of annual rent under the lease for the first year of the lease that ends after 27 March 2018;

an objective method for determining the amount of annual rent under the lease; and

if subparagraph (c)(ii) applies—the method is set out in the cross staple lease, or the associated documents, before 27 March 2018.

for an income year where the lease, or the associated documents, specify the amount of annual rent for the corresponding year of the lease under subsection (4)—that amount; or

(b) for an income year where that amount is not so specified—the amount worked out under paragraph (a) in relation to the most recent year of the lease for which an amount is so specified, indexed annually in accordance with Subdivision 960-M of the Income Tax Assessment Act 1997.

after a particular 27 March; and

on or before the next 27 March.

first, work out a reasonable estimate of whichever of the following is applicable:

if the relevant asset entity is a trust that is not an *AMIT—the relevant asset entity’s *net income, or *tax loss, for the income year;

if the relevant asset entity is an AMIT—the sum of the relevant asset entity’s *trust components with the character of assessable income, or the relevant asset entity’s tax loss, for the income year;

(iii) if the relevant asset entity is a partnership—the relevant asset entity’s net income, or partnership loss (Income Tax Assessment Act 1936), for the income year;within the meaning of section 90 of the

next, work out a reasonable estimate of whichever of the following is applicable:

if the relevant operating entity is a trust that is not an AMIT—the operating asset entity’s net income, or tax loss, for the income year;

(ii) if the relevant operating entity is a partnership—the relevant operating entity’s net income, or partnership loss (Income Tax Assessment Act 1936), for the income year;within the meaning of section 90 of the

otherwise—the relevant operating entity’s taxable income or tax loss for the income year;

next, add the results of paragraphs (a) and (b);

next, multiply the result of paragraph (c) by 0.8;

next, subtract the result of paragraph (a) from the result of paragraph (d);

next, add the amount of *excepted MIT CSA income mentioned in subsection 12-441(1) to the result of paragraph (e).

(a) treat the amount of a *tax loss, or of a partnership loss (Income Tax Assessment Act 1936), as a negative number; andwithin the meaning of section 90 of the

disregard any *tax loss for a previous income year of the relevant asset entity or relevant operating entity.

an entity is an *asset entity in relation to an income year and is a *stapled entity in relation to a *cross staple arrangement; and

the entity is entitled to a deduction for the income year against its assessable income that arises from *rent from land investment that it derives or receives in the income year; and

the entity derives, receives or makes an amount of *excepted MIT CSA income in the income year (disregarding this section and subsection 12-441(2)); and

the amount of that excepted MIT CSA income exceeds the entity’s *concessional cross staple rent cap for the income year.

first, the amount can only be deducted against an amount of assessable income that is *excepted MIT CSA income, to the extent that the excepted MIT CSA income does not exceed the entity’s *concessional cross staple rent cap for the income year;

next, if an amount of the deduction remains after applying the rule in paragraph (a), the amount can only be deducted against an amount of assessable income that is *MIT cross staple arrangement income;

next, if an amount of the deduction remains after applying the rules in paragraphs (a) and (b), the amount can be deducted against an amount of assessable income in accordance with other provisions of this Act.

an amount is included in the assessable income for an income year of a *managed investment trust in relation to the income year (worked out for the purposes of determining the trust’s *net income, or in the case of an *AMIT, the trust’s total assessable income, for the income year); and

(b) the amount mentioned in paragraph (a) is, or is attributable to, an amount derived, received or made from another entity (the second entity); and

(c) the amount mentioned in paragraph (a) is not an amount mentioned in paragraph 12-405(1)(a), (b), (c), (d) or (e).

the managed investment trust holds a *total participation interest in the second entity of greater than nil; and

the amount arises because of that total participation interest; and

the second entity:

(i) is a trading trust for the purposes of Income Tax Assessment Act 1936 in relation to the income year; orDivision 6C of Part III of the

is a partnership or a trust that is not a unit trust, but would be such a trading trust in relation to the income year if it were a unit trust throughout the income year; and

the second entity is not a *public trading trust in relation to the income year.

(a) an amount (the relevant amount) included in the assessable income for an income year of a *managed investment trust is *MIT trading trust income of the managed investment trust (disregarding this section); and

(b) immediately before 27 March 2018, the managed investment trust held a *total participation interest (the pre-announcement TPI) of greater than nil in the second entity mentioned in subsection 12-446(1) (the second entity); and

the relevant amount was derived, received or made by the managed investment trust before 1 July 2026.

the pre-announcement TPI;

the post-announcement TPI.

an amount is included in the assessable income for an income year of a *managed investment trust in relation to the income year (worked out for the purposes of determining the trust’s *net income, or in the case of an *AMIT, the trust’s total assessable income, for the income year); and

(b) the amount mentioned in paragraph (a) is not an amount mentioned in paragraph 12-405(1)(a), (b), (c), (d) or (e).

is used, or could reasonably be used, for carrying on a *primary production business; and

is held primarily for the purposes of deriving or receiving rent.

treat the economic infrastructure facility as being separate from the Australian agricultural land for rent; and

(b) treat the economic infrastructure facility as not being Australian agricultural land for rent.

(a) an amount (the relevant amount) is included in the assessable income for an income year of a *managed investment trust in relation to the income year (worked out for the purposes of determining the trust’s *net income, or in the case of an *AMIT, the trust’s total assessable income, for the income year); and

the relevant amount would be *MIT agricultural income (disregarding this section) of the managed investment trust because it is attributable to an asset that is *Australian agricultural land for rent; and

the managed investment trust derived, received or made the relevant amount before 1 July 2026; and

if the managed investment trust derived, received or made the relevant amount because the managed investment trust held the asset:

the managed investment trust held the asset just before 27 March 2018; or

before 27 March 2018, the managed investment trust entered into a contract for the *acquisition or lease of the asset; and

(e) if the managed investment trust derived, received or made the relevant amount because another entity (the second entity) held the asset:

the second entity held the asset just before 27 March 2018; or

(ii) before 27 March 2018, the second entity entered into a contract for the acquisition or lease of the asset; and

(f) if paragraph (e) applies—immediately before 27 March 2018, the managed investment trust held a *total participation interest (the pre-announcement TPI) of greater than nil in the second entity.

the pre-announcement TPI;

the post-announcement TPI.

an amount is included in the assessable income for an income year of a *managed investment trust in relation to the income year (worked out for the purposes of determining the trust’s *net income, or in the case of an *AMIT, the trust’s total assessable income, for the income year); and

(b) the amount mentioned in paragraph (a) is not an amount mentioned in paragraph 12-405(1)(a), (b), (c), (d) or (e).

(a) the entity that held the *residential dwelling asset just before the time (the CGT event time) when the CGT event happened had held it for at least 3,650 days (consecutive or not); and

each of those days satisfies the following requirements:

the day is on or after 1 July 2017 and before the CGT event time;

the residential dwelling asset was used on the day to *provide affordable housing.

(a) an amount (the relevant amount) is included in the assessable income for an income year of a *managed investment trust in relation to the income year (worked out for the purposes of determining the trust’s *net income, or in the case of an *AMIT, the trust’s total assessable income, for the income year); and

the relevant amount would be *MIT residential housing income (disregarding this section) of the *managed investment trust because it is attributable to a facility that consists of or contains a *residential dwelling asset; and

the managed investment trust derived, received or made the relevant amount before 1 October 2027; and

if the managed investment trust derived, received or made the relevant amount because the managed investment trust held the facility:

the managed investment trust held the facility just before the time mentioned in subsection (7); or

before the time mentioned in subsection (7), the managed investment trust entered into a contract for the *acquisition, creation or lease of the facility; and

(e) if the managed investment trust derived, received or made the relevant amount because another entity (the second entity) held the facility:

the second entity held the facility just before the time mentioned in subsection (7); or

before the time mentioned in subsection (7), the second entity entered into a contract for the acquisition, creation or lease of the facility; and

(f) if paragraph (e) applies—immediately before the time mentioned in subsection (7), the managed investment trust held a *total participation interest (the pre-announcement TPI) of greater than nil in the second entity.

the pre-announcement TPI;

the post-announcement TPI.

is a *dwelling; and

is *taxable Australian real property; and

is *residential premises (other than *commercial residential premises); and

(d) is not a dwelling that:

(i) is used primarily to provide specialist disability accommodation (within the meaning of the National Disability Insurance Scheme (Specialist Disability Accommodation Conditions) Rule 2018); and

is enrolled in accordance with section 6 of that Rule; and

(e) is not a dwelling that:

is used primarily to provide disability accommodation; and

is a dwelling of a kind prescribed by the regulations for the purposes of this subparagraph.

any of the following provisions apply in relation to an amount:

section 12-448;

section 12-450; and

the amount is, or is attributable to, a *capital gain from a *CGT event in relation to an asset that is a *membership interest in an entity; and

just before the CGT event happened, the entity held, directly or indirectly, one or more assets that are any of the following;

*Australian agricultural land for rent;

a *residential dwelling asset.

(a) in a case where the *membership interest mentioned in subsection (1) passes the principal asset test in Income Tax Assessment Act 1997 immediately before the time the *CGT event happens:section 855-30 of the

if the assets mentioned in paragraph (1)(c) are all *Australian agricultural land for rent—treat the *capital gain as being wholly attributable to the Australian agricultural land for rent; or

if the assets mentioned in paragraph (1)(c) are all *residential dwelling assets—treat the capital gain as being wholly attributable to residential dwelling assets; or

if all the assets mentioned in paragraph (1)(c) are Australian agricultural land for rent and residential dwelling assets, and the *market value of the membership interest that is attributable to Australian agricultural land for rent equals or exceeds the market value of the membership interest that is attributable to residential dwelling assets—treat the capital gain as being wholly attributable to Australian agricultural land for rent; or

if all the assets mentioned in paragraph (1)(c) are Australian agricultural land for rent and residential dwelling assets, and the market value of the membership interest that is attributable to Australian agricultural land for rent falls short of the market value of the membership interest that is attributable to residential dwelling assets—treat the capital gain as being wholly attributable to residential dwelling assets; or

in any other case—treat the capital gain:

as not being attributable to Australian agricultural land for rent; and

as not being attributable to residential dwelling assets.

*Australian agricultural land for rent;

a *residential dwelling asset.

(a) in relation to a *cross staple arrangement—has the meaning given by Taxation Administration Act 1953; orsection 12-436 in Schedule 1 to the

otherwise—has the meaning given by section 124-1045.

(gaaa) decisions of the Treasurer under Taxation Administration Act 1953;section 12-439 in Schedule 1 to the

the fund payment is made on or after 1 July 2019; and

the income year is the 2019-20 income year or a later income year.

(a) Income Tax Assessment Act 1997, as inserted by item 2 of this Schedule, applies in relation to an amount of rent from land investment that is derived or received in relation to the 2019-20 income year or a later income year; andsection 25-115 of the

(b) Income Tax Assessment Act 1997, as inserted by item 2 of this Schedule, applies in relation to an amount of rent from land investment that is derived or received on or after 27 March 2018.section 25-120 of the

each other entity in which the entity has a direct or indirect interest;

each other entity in which the entity has a direct or indirect interest;

treat the reference in paragraph (1)(a) or (2A)(a) to 50% as instead being a reference to 10%; and

if subsection (2C) applies—treat the other entity mentioned in subsection (1) or (2A) as holding an *associate interest in the first entity mentioned in that subsection of 10%; and

(c) disregard subsection 318(5) of the Income Tax Assessment Act 1936; and

if subsection (2D) applies—in determining whether an entity is an *associate of another entity, treat the benefiting entity mentioned in that subsection as being a partner in the partnership.

the other entity mentioned in subsection (1) or (2A) holds an *associate interest in the first entity mentioned in that subsection of less than 10%; and

it is reasonable to conclude that the entity, or one of the entities, who created the circumstance described in paragraph (a) of this subsection did so for the principal purpose of, or for more than one principal purpose that included the purpose of, ensuring that the first entity will not be an *associate entity of the other entity.

a trust (other than a *public trading trust) is a partner in a partnership; and

(b) another entity (the benefiting entity) benefits under the trust (as determined in accordance with paragraph 318(6)(a) of the Income Tax Assessment Act 1936).

(a) the superannuation fund satisfies the portfolio interest test in subsection (3CC) in relation to the entity mentioned in subsection (3CB) (the test entity):

at the time the income was derived; and

throughout any 12 month period that began no earlier than 24 months before that time and ended no later than that time; and

the superannuation fund does not, at the time the income was derived, have influence of a kind described in subsection (3CD) in relation to the test entity; and

(c) the income is not non-assessable non-exempt income of the superannuation fund because of:

(i) Subdivision 880-C of the Income Tax Assessment Act 1997; or

(ii) Income Tax (Transitional Provisions) Act 1997.Division 880 of the

unless paragraph (b) applies—the entity that paid the interest, dividends or non-share dividends as mentioned in subparagraph (3)(jb)(ii); or

if subsection 128A(3) applies in relation to a resident trust estate (within the meaning of Division 6)—the trust estate.

is less than 10%; and

would be less than 10% if, in working out the direct participation interest (within the meaning of that Act) that any entity holds in a company:

an equity holder were treated as a shareholder; and

the total amount contributed to the company in respect of non-share equity interests were included in the total paid-up share capital of the company.

the superannuation fund:

is directly or indirectly able to determine; or

in acting in concert with others, is directly or indirectly able to determine;

at least one of those persons is accustomed or obliged to act, or might reasonably be expected to act, in accordance with the directions, instructions or wishes of the superannuation fund (whether those directions, instructions or wishes are expressed directly or indirectly, or through the superannuation fund acting in concert with others).

the income was derived by the superannuation fund in respect of an asset; and

(b) subsection 128A(3) of the Income Tax Assessment Act 1936 does not apply in relation to that income; and

the superannuation fund acquired the asset on or before 27 March 2018.

(a) because of the operation of subsection 128A(3) of the Income Tax Assessment Act 1936, a superannuation fund derived the income because it holds an interest in a trust estate; and

the superannuation fund started to hold that interest on or before 27 March 2018; and

the dividend, non-share dividend or interest that was included in the income of the trust estate as mentioned in that subsection was so included in respect of an asset; and

the trustee of the trust estate acquired the asset on or before 27 March 2018.

(a) Income Tax Assessment Act 1997; orDivision 880 of the

(b) Income Tax (Transitional Provisions) Act 1997.Division 880 of the

Division 880; or

(b) Income Tax (Transitional Provisions) Act 1997.Division 880 of the

a body politic of a foreign country, or a part of a foreign country;

a *foreign government agency;

an entity:

in which an entity covered by paragraph (a) or (b) holds a *total participation interest of 100%; and

(ii) that is not an Australian resident; and

(iii) that is not a resident trust estate for the purposes of Division 6 of Part III of the Income Tax Assessment Act 1936.

a body politic of a foreign country (other than a body politic of a part of that foreign country);

a *foreign government agency in relation to that foreign country (other than a foreign government agency in relation to a part of that foreign country);

an entity:

in which an entity covered by paragraph (a) or (b) holds a *total participation interest of 100%; and

(ii) that is not an Australian resident; and

(iii) that is not a resident trust estate for the purposes of Division 6 of Part III of the Income Tax Assessment Act 1936.

a body politic of a part of a foreign country;

a *foreign government agency in relation to that part of that foreign country;

an entity:

in which an entity covered by paragraph (a) or (b) holds a *total participation interest of 100%; and

(ii) that is not an Australian resident; and

(iii) that is not a resident trust estate for the purposes of Division 6 of Part III of the Income Tax Assessment Act 1936.

as being a person that is not a resident of Australia; and

as being a resident of the foreign country.

as being a person that is not a resident of Australia; and

as being a resident of the foreign country.

the sovereign entity is covered by section 880-125; and

(b) the amount is a return on any of the following kinds of interest that the sovereign entity holds in another entity (the test entity):

a *membership interest;

a *debt interest;

a *non-share equity interest; and

the test entity is:

(i) a company that is an Australian resident at the time (the income time) when the amount becomes ordinary or statutory income of the sovereign entity; or

a *managed investment trust in relation to the income year in which the income time occurs; and

the *sovereign entity group of which the sovereign entity is a member satisfies the portfolio interest test in subsection (4) in relation to the test entity:

at the income time; and

throughout any 12 month period that began no earlier than 24 months before that time and ended no later than that time; and

the sovereign entity group of which the sovereign entity is a member does not have influence of a kind described in subsection (6) in relation to the test entity at the income time.

(a) *non-concessional MIT income (see Taxation Administration Act 1953); orsection 12-435 in Schedule 1 to the

an amount that would be non-concessional MIT income if the following provisions were disregarded:

subsection 12-437(5) in that Schedule;

sections 12-440, 12-447, 12-449 and 12-451 in that Schedule.

is less than 10%; and

would be less than 10% if, in working out the *direct participation interest that any entity holds in a company:

an *equity holder were treated as a shareholder; and

the total amount contributed to the company in respect of *non-share equity interests were included in the total paid-up share capital of the company.

a particular *direct participation interest; or

a particular *indirect participation interest;

a *member of the group:

is directly or indirectly able to determine; or

in acting in concert with others, is directly or indirectly able to determine;

at least one of those persons is accustomed or obliged to act, or might reasonably be expected to act, in accordance with the directions, instructions or wishes of a member of the group (whether those directions, instructions or wishes are expressed directly or indirectly, or through the member acting in concert with others).

the sovereign entity is covered by section 880-125; and

the amount is a loss in respect of any of the following kinds of interest that the sovereign entity holds in another entity:

a *membership interest;

a *debt interest;

a *non-share equity interest; and

the requirements in paragraphs 880-105(1)(c), (d) and (e) would be satisfied, on the assumptions that:

the amount were *ordinary income or *statutory income; and

the amount became ordinary income or statutory income of the sovereign entity at the time it arose; and

references in those paragraphs to the test entity were references to the other entity mentioned in paragraph (b) of this section.

the sovereign entity is covered by section 880-125; and

the CGT asset is a *membership interest, *non-share equity interest or *debt interest in another entity; and

the requirements in paragraphs 880-105(1)(c), (d) and (e) would be satisfied, on the assumptions that:

the capital gain were an amount of *ordinary income or *statutory income; and

the amount mentioned in subparagraph (i) became ordinary income or statutory income of the sovereign entity immediately before the time the CGT event happened; and

references in those paragraphs to the test entity were references to the other entity mentioned in paragraph (b) of this section.

the entity is funded solely by public monies;

all returns on the entity’s investments are public monies;

(c) the entity is not a partnership;

(d) the entity is not any of the following:

a *public non-financial entity;

a *public financial entity (other than a public financial entity that only carries on central banking activities).

producing or trading non-financial goods;

providing services that are not financial services.

it trades in financial assets and liabilities;

it operates commercially in the financial markets;

its principal activities include providing any of the following financial services:

financial intermediary services, including deposit-taking and insurance services;

financial auxiliary services, including brokerage, foreign exchange and investment management services;

capital financial institution services, including financial services in relation to assets or liabilities that are not available on open financial markets.

the amount is a return on an investment asset under a scheme; and

the sovereign entity acquired the investment asset on or before 27 March 2018 under the scheme; and

on or before 27 March 2018, the sovereign entity applied for a private ruling in relation to the scheme; and

before 1 July 2026, the Commissioner gave the entity a private ruling confirming that income from the investment asset was not subject to income tax, or withholding tax, because of the doctrine of sovereign immunity; and

the private ruling applied during at least part of the period:

starting on 27 March 2018; and

ending before 1 July 2026;

(f) the scheme carried out is not materially different to the scheme specified in the private ruling; and

the income year is:

unless subparagraph (ii) applies—the 2025-26 income year or an earlier income year; or

if the last income year to which the private ruling relates is a later income year than the 2025-26 income year—that later income year, or an earlier income year.

the amount is a loss in respect of an investment asset under a scheme; and

the requirements in paragraphs 880-5(b) to (g) are satisfied.

the capital gain arises under a scheme; and

the CGT asset is a membership interest, non-share equity interest or debt interest in another entity; and

the requirements in paragraphs 880-5(b) to (g) are satisfied (on the assumption that references in those paragraphs to the investment asset were references to the CGT asset).

a sovereign entity acquired an asset (other than money) on or before 27 March 2018 under a scheme; and

on or before 27 March 2018, the sovereign entity applied for a private ruling in relation to the scheme; and

before 1 July 2026, the Commissioner gave the entity a private ruling confirming that income from the asset was not subject to income tax, or withholding tax, because of the doctrine of sovereign immunity; and

the private ruling applied during at least part of the period:

starting on 27 March 2018; and

ending before 1 July 2026;

the sovereign entity holds the asset on the day mentioned in subsection (5).

to have disposed of the asset, immediately before the day mentioned in subsection (5), for a consideration equal to its market value; and

to have acquired the asset again, immediately after the disposal mentioned in paragraph (a), for a consideration equal to the higher of the following:

its market value immediately before that disposal;

its cost base immediately before that disposal.

(a) the purposes of Parts 3-1 and 3-3 of the Income Tax Assessment Act 1997;

if the asset is a revenue asset—determining whether an amount is included in, or can be deducted from, the assessable income of the entity.

disregard any capital gain or capital loss the sovereign entity makes because of the disposal mentioned in paragraph (2)(a); or

if the asset is a revenue asset—disregard any amount that could (apart from this subsection) be included in, or be deducted from, the assessable income of the entity as a result of that disposal.

unless paragraph (b) applies—the later of the following days:

1 July 2026;

the day before the private ruling ceases to apply; or

a day earlier than the day mentioned in paragraph (a), if:

the scheme mentioned in paragraph (1)(a) is not, when it is first carried out, materially different to the scheme specified in the private ruling; and

it becomes, on the earlier day, materially different to the scheme specified in the private ruling.

in relation to a *sovereign entity group—has the meaning given by section 880-20; and

on the test day, the dwelling is *taxable Australian real property and is *residential premises that:

are tenanted or available to be tenanted; and

are not *commercial residential premises; and

on the test day, the tenancy or prospective tenancy of the dwelling is exclusively managed by an *eligible community housing provider; and

the eligible community housing provider has given each entity that holds an *ownership interest in the dwelling a certificate under section 980-15 that covers the dwelling for the test day; and

(d) no entity is entitled to receive an incentive, under the Scheme prescribed for the purposes of Part 2 of the National Rental Affordability Scheme Act 2008, for the dwelling for the NRAS year (within the meaning of that Scheme) that includes the test day; and

in the case of a *managed investment trust holding an *ownership interest in the dwelling on the test day—none of the tenants or occupants of the dwelling on that day holds an interest in the trust that passes the *non-portfolio interest test at any time during that day.

an entity registered (however described) under an *Australian law as a provider of community housing services; or

an entity registered (however described) by an *Australian government agency as a provider of community housing services.

include a declaration that the *eligible community housing provider reasonably believes paragraphs 980-5(a) and (b) to be satisfied for the *dwelling for the test day; and

be given in the *approved form on or before the 31st day after the end of the income year that contains the test day.