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Tax Laws Amendment (2010 Measures No. 2) Bill 2010

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The Parliament of the

Commonwealth of Australia






Tax Laws Amendment (2010 Measures No. 2) Bill 2010



( 1 )     Schedule  1 , item  13 , page 9 (after line 10) , after subsection 109CA ( 7 ), insert:

          (7A)  Subsection (1) does not apply to the provision of a dwelling to the entity if:

                     (a)  the dwelling is a flat or home unit that is part of a complex of 2 or more flats or home units; and

                     (b)  the provider of the dwelling is a company that owns a legal or equitable interest in the land on which the complex is erected; and

                     (c)  there is more than one share in the company, and each share (whether singly or as part of a parcel of shares) gives the relevant shareholder the right to occupy a flat or home unit in the complex; and

                     (d)  each flat or home unit in the complex is covered by a share, or a parcel of shares, in the company; and

                     (e)  the dwelling is provided to the entity because a shareholder holds such a share, or parcel of shares; and

                      (f)  the company does not have legal or equitable interests in any assets other than legal or equitable interests in:

                              (i)  the complex, and the land on which it is erected; and

                             (ii)  any related land and buildings; and

                            (iii)  any related plant, machinery, equipment, furniture or fittings; and

                            (iv)  any assets relating to the matters mentioned in paragraph (g); and

                     (g)  the assessable income of the company is derived predominantly from:

                              (i)  managing and maintaining the complex (including the assets mentioned in subparagraphs (f)(i), (ii) and (iii)); and

                             (ii)  interest and dividends relating to income derived from managing and maintaining the complex (including the assets mentioned in those subparagraphs).

          (7B)  Subsection (7A) does not apply in a case to which Subdivision E (about interposed entities) applies, if the company mentioned in that subsection is interposed between:

                     (a)  a private company; and

                     (b)  a shareholder, or an associate of a shareholder, of the private company.

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(2)     Schedule 1, item 13, page 9 (lines 12 and 13), omit “subsections (6) and (7)”, substitute “subsections (6) to (7A)”.

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