2013‑2014‑2015

The Parliament of the
Commonwealth of Australia

HOUSE OF REPRESENTATIVES

EXPOSURE DRAFT

Tax Laws Amendment (New Tax System for Managed Investment Trusts) Bill 2015

No.      , 2015

(Treasury)

A Bill for an Act to amend the law relating to taxation, and for related purposes

Contents
1	Short title	1
2	Commencement	1
3	Schedules	2
Schedule 1—Managed investment trusts	3
Income Tax Assessment Act 1997	3
Taxation Administration Act 1953	15
Schedule 2—Attribution managed investment trusts	16
Income Tax Assessment Act 1936	16
Income Tax Assessment Act 1997	16
Taxation Administration Act 1953	65
Schedule 3—Withholding MITs and fund payments	68
Income Tax Assessment Act 1936	68
Taxation Administration Act 1953	68
Schedule 4—Annual cost base adjustment for member’s unit or interest in AMIT	86
Income Tax Assessment Act 1997	86
Schedule 5—20% tracing rule	93
Income Tax Assessment Act 1936	93
Income Tax Assessment Act 1997	93
Schedule 6—Consequential amendments	94
Income Tax Assessment Act 1936	94
Schedule 7—Widely‑held requirements	96
Taxation Administration Act 1953	96
Schedule 8—Application	97
Income Tax (Transitional Provisions) Act 1997	97
Schedule 9—Definitions	100
Income Tax Assessment Act 1997	100

A Bill for an Act to amend the law relating to taxation, and for related purposes
The Parliament of Australia enacts:
1  Short title
		This Act may be cited as the Tax Laws Amendment (New Tax System for Managed Investment Trusts) Act 2015.
2  Commencement
	(1)	Each provision of this Act specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of the table. Any other statement in column 2 has effect according to its terms.

Commencement information	
Column 1	Column 2	Column 3	
Provisions	Commencement	Date/Details	
1.  Sections 1 to 3 and anything in this Act not elsewhere covered by this table	The day this Act receives the Royal Assent.		
2.  Schedules 1 to 6 	The day this Act receives the Royal Assent.		
3.  Schedule 7	1 July 2014.	1 July 2014	
4.  Schedules 8 and 9 	The day this Act receives the Royal Assent.		
Note:	This table relates only to the provisions of this Act as originally enacted. It will not be amended to deal with any later amendments of this Act.
	(2)	Any information in column 3 of the table is not part of this Act. Information may be inserted in this column, or information in it may be edited, in any published version of this Act.
3  Schedules
		Legislation that is specified in a Schedule to this Act is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this Act has effect according to its terms.
Schedule 1—Managed investment trusts
  
Income Tax Assessment Act 1997
1  Division 275 (heading)
Repeal the heading, substitute:
Division 275—Australian managed investment trusts: general
2  Section 275‑1
After “are or were certain Australian managed investment trusts”, insert “(or certain other trusts)”.
3  Subdivision 275‑A
Repeal the Subdivision, substitute:
Subdivision 275‑A—Meaning of managed investment trust
275‑5  Meaning of managed investment trust
	(1)	A trust is a managed investment trust in relation to an income year if any of the following requirements are met:
	(a)	the trust is covered under subsection (3) of this section in relation to the income year (ordinary case);
	(b)	the trust is covered under 275‑40 in relation to the income year (only member of trust is a managed investment trust etc.).
	(2)	A trust is also a managed investment trust in relation to an income year if any of the following requirements are met:
	(a)	the trust is covered under section 275‑45 in relation to the income year (no fund payment made in relation to the income year);
	(b)	the trust is covered under section 275‑50 in relation to the income year (temporary circumstances outside the control of the trustee).
	(3)	A trust is covered under this subsection in relation to an income year if:
	(a)	at the time the trustee of the trust makes the first *fund payment in relation to the income year, or at an earlier time in the income year:
	(i)	the trustee of the trust was an Australian resident; or
	(ii)	the central management and control of the trust was in Australia; and
	(b)	the trust is not a trust covered by subsection (4) (trading trust etc.) in relation to the income year; and
	(c)	at the time the payment is made, the trust is a managed investment scheme (within the meaning of section 9 of the Corporations Act 2001); and
	(d)	at the time the payment is made:
	(i)	the trust is covered by section 275‑10 (trusts with wholesale membership); or
	(ii)	if the trust is not covered by section 275‑10—the trust is registered under section 601EB of the Corporations Act 2001; and
	(e)	the trust satisfies, in relation to the income year:
	(i)	if, at the time the payment is made, the trust is registered under section 601EB of the Corporations Act 2001 and is covered by section 275‑10—either or both of the widely‑held requirements in subsections 275‑15(1) and 275‑20(1); or
	(ii)	if, at the time the payment is made, the trust is so registered and is not covered by section 275‑10—either or both of the widely‑held requirements in subsections 275‑15(2) and 275‑20(1); or
	(iii)	if, at the time the payment is made, the trust is not so registered and is covered by section 275‑10—the widely‑held requirements in subsection 275‑15(1); and
	(f)	the trust satisfies the closely‑held restrictions in subsection 275‑25(1) in relation to the income year; and
	(g)	if the trust is covered by section 275‑10 at the time the payment is made—it satisfies the licensing requirements in section 275‑30 in relation to the income year.
Trading unit trust or other trust carrying on trading business etc. cannot be managed investment trust
	(4)	A trust is covered by this subsection in relation to an income year if:
	(a)	in the case of a unit trust—the trust is a trading trust for the purposes of Division 6C in Part III of the Income Tax Assessment Act 1936 in relation to the income year; or
	(b)	in any other case—the trust at any time in the income year:
	(i)	carried on a trading business (within the meaning of that Division); or
	(ii)	controlled, or was able to control, directly or indirectly, the affairs or operations of another person in respect of the carrying on by that other person of a trading business (within the meaning of that Division).
Crown entities, etc.
	(5)	For the purposes of paragraphs (3)(d) and (e), treat an entity as registered under section 601EB of the Corporations Act 2001 at the time the payment is made if at that time the trust is operated by:
	(a)	an entity that would, but for subsection 5A(4) of that Act (about the Crown not being bound by Chapter 6CA or 7 of that Act), be required under that Act to be a financial services licensee (within the meaning of section 761A of that Act) whose licence would cover operating such a managed investment scheme; or
	(b)	an entity that:
	(i)	is a *wholly‑owned subsidiary of an entity of a kind mentioned in paragraph (a); and
	(ii)	would, but for any instrument issued by ASIC under that Act that has effect in relation to the entity and operation of the scheme mentioned in paragraph (3)(c), be required under that Act to be a financial services licensee (within the meaning of section 761A of that Act) whose licence would cover operating such a managed investment scheme.
Start‑up and wind‑down phases
	(6)	Treat the requirements in paragraphs (3)(e) and (f) as being satisfied if:
	(a)	the trust is created during the period:
	(i)	starting 12 months before the start of the income year; and
	(ii)	ending at the end of the income year; or
	(b)	the trust ceases to exist during the income year, and was a *managed investment trust (disregarding paragraph (a)) in relation to the previous income year.
275‑10  Trusts with wholesale membership
		A trust is covered by this section at a time if, at that time:
	(a)	the trust is not required to be registered in accordance with section 601ED of the Corporations Act 2001 (whether or not it is actually so registered) because of subsection 601ED(2) of that Act (no product disclosure statement required) or because it is operated or managed by an entity covered by subsection 275‑30(2) (Crown entities); and
	(b)	the total number of entities that had become a *member of the trust because a financial product or a financial service was provided to, or acquired by, the entity as a retail client (within the meaning of sections 761G and 761GA of the Corporations Act 2001) is no more than 20; and
	(c)	the entities mentioned in paragraph (b) have a total *MIT participation interest in the trust of no more than 10%.
275‑15  Widely‑held requirements—ordinary case
	(1)	The trust satisfies the requirements in this subsection in relation to the income year if, at the time the payment mentioned in paragraph 275‑5(3)(a) is made, the trust has at least 25 *members.
	(2)	The trust satisfies the requirements in this subsection in relation to the income year if, at the time the payment mentioned in paragraph 275‑5(3)(a) is made:
	(a)	units in the trust are listed for quotation in the official list of an *approved stock exchange in Australia; or
	(b)	the trust has at least 50 *members (ignoring objects of a trust).
	(3)	For the purposes of subsection (1) and paragraph (2)(b), determine the number of *members of the trust as follows:
	(a)	first, by applying the rules in subsection (5), identify:
	(i)	the members of the trust that are not entities covered by subsection (4); and
	(ii)	the members of the trust that are entities covered by subsection (4);
	(b)	next, work out the number of members mentioned in subparagraph (a)(i);
	(c)	next:
	(i)	work out the *MIT participation interest in the trust of each entity mentioned in subparagraph (a)(ii); and
	(ii)	for each of those entities, multiply the total of its MIT participation interest in the trust by 50 and round the result upwards to the nearest whole number; and
	(iii)	work out the total of the results of subparagraph (ii) for all of those entities;
	(d)	next, work out the total of the results of paragraphs (b) and (c).
	(4)	This subsection covers the following kinds of entity:
	(a)	a *life insurance company;
	(b)	a *foreign life insurance company that is regulated under a *foreign law;
	(c)	a *complying superannuation fund, a *complying approved deposit fund or a *foreign superannuation fund, being a fund that has at least 50 *members;
	(d)	a *pooled superannuation trust that has at least one member that is a complying superannuation fund that has at least 50 members;
	(e)	a *managed investment trust in relation to the income year;
	(f)	an entity:
	(i)	that is recognised under a *foreign law as being used for collective investment by pooling the contributions of its members as consideration to acquire rights to benefits produced by the entity; and
	(ii)	that has at least 50 members; and
	(iii)	the contributing members of which do not have day‑to‑day control over the entity’s operation;
	(g)	an entity, the principal purpose of which is to fund pensions (including disability and similar benefits) for the citizens or other contributors of a foreign country, if:
	(i)	the entity is a fund established by an *exempt foreign government agency; or
	(ii)	the entity is established under a foreign law for an exempt foreign government agency; or
	(iii)	the entity is a *wholly‑owned subsidiary of an entity mentioned in subparagraph (i) or (ii);
	(h)	an investment entity that satisfies all of these requirements:
	(i)	the entity is wholly‑owned by one or more *foreign government agencies, or is a wholly‑owned subsidiary of one or more foreign government agencies;
	(ii)	the entity is established using only the public money or public property of the foreign government concerned;
	(iii)	all economic benefits obtained by the entity have passed, or are expected to pass, to the foreign government concerned;
	(i)	an entity established and wholly‑owned by an *Australian government agency, if the capital of the entity, and returns from the investment of that capital, are used for the primary purpose of meeting statutory government liabilities or obligations (such as superannuation liabilities and liabilities arising from compensation or workcover claims);
	(j)	an entity of a kind similar to an entity mentioned in the preceding paragraphs of this subsection as specified in the regulations;
	(k)	an entity, all the *membership interests in which are beneficially owned by any of the following:
	(i)	entities mentioned in the preceding paragraphs of this subsection;
	(ii)	*wholly‑owned subsidiaries of such entities.
	(5)	The rules are as follows:
	(a)	if an entity that is not a trust holds interests in the trust indirectly, through a *chain of trusts:
	(i)	treat the entity as a member of the trust; and
	(ii)	do not treat a trust in the chain of trusts as a member of the trust;
	(b)	do not treat an object of the trust as a member of the trust;
	(c)	if the trust is mentioned in subparagraph 275‑5(3)(d)(i) (trusts with wholesale membership)—do not treat an individual as a member of the trust (other than an individual who became a member of the trust because a financial product or a financial service was provided to, or acquired by, the individual as a wholesale client (within the meaning of section 761G of the Corporations Act 2001));
	(d)	the rules in subsection (7).
	(6)	For the purposes of paragraph (5)(a), treat an entity covered by subsection (4) as an entity that is not a trust.
	(7)	The rules are as follows:
	(a)	treat the following entities as together being one entity:
	(i)	an individual;
	(ii)	each of his or her relatives;
	(iii)	each entity acting in the capacity of nominee of an individual mentioned in subparagraph (i) or (ii);
	(b)	treat the following entities as together being one entity (the notional entity):
	(i)	an entity that is not an individual;
	(ii)	each entity acting in the capacity of nominee of the entity mentioned in subparagraph (i).
	(8)	For the purposes of subsection (5), if the entity mentioned in subparagraph (7)(b)(i) is an entity covered by subsection (4), treat the notional entity as an entity covered by subsection (4).
275‑20  Widely‑held requirements for registered MIT—special case for entities covered by subsection 275‑15(4)
	(1)	The trust satisfies the requirements in this subsection in relation to the income year if:
	(a)	one or more entities covered by subsection 275‑15(4) have a total *MIT participation interest in the trust of more than 25% at the time the payment mentioned in paragraph 275‑5(3)(a) is made; and
	(b)	at no time in the income year does an entity (other than an entity covered by subsection 275‑15(4)) have a MIT participation interest in the trust of more than 60%.
	(2)	For the purposes of paragraphs (1)(a) and (b):
	(a)	if:
	(i)	an entity covered by subsection 275‑15(4) has a *MIT participation interest (the first interest) in the trust; and
	(ii)	another entity covered by subsection 275‑15(4) also has a MIT participation interest (the second interest) in the trust;
		disregard the second interest to the extent that it arises through the existence of the first interest; and
	(b)	if an entity that is not a trust has a MIT participation interest in the trust because it holds interests in the trust indirectly, through a *chain of trusts—do not treat a trust in the chain of trusts as having a MIT participation interest in the trust.
	(3)	For the purposes of paragraph (2)(b), treat an entity covered by subsection 275‑15(4) as an entity that is not a trust.
	(4)	For the purposes of paragraphs (1)(a) and (b), apply the rules in subsection 275‑15(7).
275‑25  Closely‑held restrictions
	(1)	The trust satisfies the requirements in this subsection in relation to the income year unless, at any time in the income year, any of the following situations exist:
	(a)	for a trust mentioned in subparagraph 275‑5(3)(d)(i) (trusts with wholesale membership)—10 or fewer persons have a total *MIT participation interest in the trust of 75% or more;
	(b)	if paragraph (a) does not apply—20 or fewer persons have a total MIT participation interest in the trust of 75% or more;
	(c)	a foreign resident individual has a MIT participation interest in the trust of 10% or more.
	(2)	For the purposes of paragraphs (1)(a) and (b):
	(a)	if an entity covered by subsection 275‑15(4) has a *MIT participation interest in the trust—treat that entity as not having a MIT participation interest in the trust; and
	(b)	if an entity that is not a trust has a MIT participation interest in the trust because it holds interests in the trust indirectly, through a *chain of trusts:
	(i)	if the entity is covered by subsection 275‑15(4)—do not treat it as having a MIT participation interest in the trust; and
	(ii)	do not treat a trust in the chain of trusts as having a MIT participation interest in the trust.
	(3)	For the purposes of paragraph (2)(b), treat an entity covered by subsection 275‑15(4) as an entity that is not a trust.
	(4)	For the purposes of paragraphs (1)(a) and (b), apply the rules in subsection 275‑15(7).
275‑30  Licensing requirements for unregistered MIS
	(1)	The trust satisfies the requirements in this section in relation to the income year if, at the time the payment mentioned in paragraph 275‑5(3)(a) is made (the time of the first fund payment for the income year):
	(a)	the trust is operated or managed by:
	(i)	a financial services licensee (within the meaning of section 761A of the Corporations Act 2001) holding an Australian financial services licence whose licence covers it providing financial services (within the meaning of section 766A of that Act) to wholesale clients (within the meaning of section 761G of that Act); or
	(ii)	an authorised representative (within the meaning of section 761A of that Act) of such a financial services licensee; or
	(b)	the trust is operated or managed by an entity covered by subsection (2); or
	(c)	the trust is operated or managed by an entity that:
	(i)	is a *wholly‑owned subsidiary of an entity covered by subsection (2); and
	(ii)	is an entity covered by subsection (3).
	(2)	An entity is covered by this subsection if it would, but for subsection 5A(4) of that Act (about the Crown not being bound by Chapter 6CA or 7 of that Act), be required under the Corporations Act 2001 to be a financial services licensee (within the meaning of section 761A of that Act).
	(3)	An entity is covered by this subsection if it would, but for any instrument issued by ASIC under that Act that has effect in relation to the entity and the operation of the scheme mentioned in paragraph 275‑5(3)(c), be required under the Corporations Act 2001 to be a financial services licensee (within the meaning of section 761A of that Act).
275‑35  MIT participation interest
	(1)	An entity has a MIT participation interest in a trust if the entity, directly or indirectly:
	(a)	holds, or has the right to *acquire, interests representing a percentage of the value of the interests in the trust; or
	(b)	has the control of, or the ability to control, a percentage of the rights attaching to *membership interests in the trust; or
	(c)	has the right to receive a percentage of any distribution of income that the trust may make.
	(2)	The MIT participation interest of the entity in the trust is the greatest of the percentages mentioned in paragraphs (1)(a), (b) and (c).
275‑40  Meaning of managed investment trust—only member of trust is a managed investment trust etc.
	(1)	A trust is covered under this section in relation to an income year if:
	(a)	the condition in paragraph 275‑5(3)(a) is satisfied; and
	(b)	the condition in paragraph 275‑5(3)(b) is satisfied; and
	(c)	either:
	(i)	the only *member of the trust is an entity covered by subsection 275‑15(4) (other than an entity mentioned in paragraph 275‑15(4)(f)); or
	(ii)	the only member of the trust is an entity that is a *managed investment trust in relation to the income year because of subsection 275‑5(2); and
	(d)	the trust satisfies the licensing requirements in section 275‑30 in relation to the income year.
	(2)	A requirement in paragraph (1)(a) is satisfied if, and only if, it is satisfied:
	(a)	at the time the trustee of the trust makes the first *fund payment in relation to the income year; or
	(b)	if the trustee does not make such a payment in relation to the income year—at both the start and the end of the income year.
275‑45  Extended definition of managed investment trust—no fund payment made in relation to the income year
		A trust is covered under this section in relation to an income year if:
	(a)	the trustee of the trust does not make a *fund payment in relation to the income year; and
	(b)	the trust would be a managed investment trust in relation to the income year if the trustee of the trust had made the first fund payment in relation to the income year on the first day of the income year; and
	(c)	the trust would be a managed investment trust in relation to the income year if the trustee of the trust had made the first fund payment in relation to the income year on the last day of the income year.
275‑50  Extended definition of managed investment trust—temporary circumstances outside the control of the trustee
		A trust is covered under this section in relation to an income year if:
	(a)	apart from a particular circumstance, the trust would be a *managed investment trust in relation to the income year; and
	(b)	the circumstance is temporary; and
	(c)	the circumstance arose outside the control of the trustee of the trust; and
	(d)	it is fair and reasonable to treat the trust as a managed investment trust in relation to the income year, having regard to the following matters:
	(i)	the matters in paragraphs (a) and (b);
	(ii)	the nature of the circumstance;
	(iii)	the actions (if any) taken by the trustee of the trust to address or remove the circumstance, and the speed with which such actions are taken;
	(iv)	the extent to which treating the trust as a managed investment trust in relation to the income year would increase or reduce the amount of tax otherwise payable by the trustee, the *members of the trust or any other entity;
	(v)	any other relevant matter.
4  After subsection 275‑200(1)
Insert:
	(1A)	For the purposes of paragraph (1)(c), in determining whether the entity satisfies any of the requirements mentioned in that paragraph:
	(a)	disregard paragraph 275‑5(3)(b) (requirement of not being a trading trust etc.); and
	(b)	disregard subsection 102T(16) of the Income Tax Assessment Act 1936 (exclusion of public trading trust etc.).
Taxation Administration Act 1953
5  Sections 12‑400, 12‑401, 12‑402, 12‑402A, 12‑402B, 12‑403 and 12‑404 in Schedule 1
Repeal the sections.
Schedule 2—Attribution managed investment trusts
  
Income Tax Assessment Act 1936
1  Before subparagraph 98B(2)(a)(i)
Insert:
	(ia)	section 276‑80 of the Income Tax Assessment Act 1997;
Income Tax Assessment Act 1997
2  At the end of Part 3‑25
Add:
Division 276—Australian managed investment trusts: attribution managed investment trusts
Table of Subdivisions
	Guide to Division 276
276‑A	What is an attribution managed investment trust?
276‑B	Fixed trust treatment
276‑C	Taxation of member components
276‑D	AMIT characters
276‑E	Member components
276‑F	Trust components
276‑G	Unders and overs
276‑H	Uplifts for unders and overs
276‑J	Shortfall taxation
276‑K	AMMA statements
276‑L	Modification for non‑arm’s length income
276‑M	Debt‑like AMIT instruments
276‑N	Ceasing to be an AMIT
Guide to Division 276
276‑1  What this Division is about
A managed investment trust in relation to an income year is an attribution managed investment trust (or AMIT) for the income year if certain criteria are satisfied. In particular, the interests of the members of the trust need to be clearly defined (in accordance with section 276‑15) at all times during which the trust is in existence in the income year (see Subdivision 276‑A).
The main features of this Division are as follows:
	An AMIT in relation to an income year is treated in the same way as a fixed trust throughout the income year (see Subdivision 276‑B).
	Amounts related to income and tax offsets of an AMIT, determined by the trustee to be of a particular character, are attributed to members, generally retaining that character (see Subdivision 276‑C).
	Under‑ and over‑estimations of amounts at the trust level are carried forward and dealt with in later years. This is done on a character‑by‑character basis. An under‑estimation in an income year of a particular character results in an “under” of that character. An over‑estimation results in an “over” of that character. “Unders” and “overs” arise, and are dealt with, in the income year in which they are discovered (see Subdivision 276‑G).
Subdivision 276‑A—What is an attribution managed investment trust?
Guide to Subdivision 276‑A
276‑5  What this Subdivision is about
A managed investment trust in relation to an income year is an attribution managed investment trust (or AMIT) for the income year if certain criteria are satisfied. In particular, the interests of the members of the trust need to be clearly defined (in accordance with section 276‑15) at all times during which the trust is in existence in the income year.
Table of sections
Operative provisions
276‑10	Meaning of attribution managed investment trust (or AMIT)
276‑15	Clearly defined interests
Operative provisions
276‑10  Meaning of attribution managed investment trust (or AMIT)
		A trust is an attribution managed investment trust (or AMIT) for an income year if:
	(a)	the trust is a *managed investment trust in relation to the income year; and
	(b)	the interests of *members in the trust are clearly defined at all times when the trust is in existence in the income year (see section 276‑15); and
	(c)	if the trust is a managed investment trust in relation to the income year solely because of section 275‑40—the only member of the trust is a managed investment trust; and
	(d)	if the regulations specify criteria for the purposes of this paragraph—those criteria are satisfied in relation to the trust.
276‑15  Clearly defined interests
	(1)	For the purposes of paragraph 276‑10(b), treat the interests of *members in the trust as being clearly defined at a particular time if, and only if:
	(a)	if the trust is registered under section 601EB of the Corporations Act 2001 at that time—the requirement in subsection (2) is satisfied at that time; or
	(b)	if the trust is not registered under section 601EB of the Corporations Act 2001 at that time—the requirements in subsections (2) and (3) are satisfied at that time; or
	(c)	the requirement in subsection (4) is satisfied at that time.
	(2)	The requirement in this subsection is satisfied if:
	(a)	assuming that the trust is an *AMIT for the income year in which the time occurs, the amount of each *member component for the income year of each *member of the trust can be worked out on a fair and reasonable basis; and
	(b)	the right of each member of the trust to the income and capital of the trust cannot be materially diminished through the exercise of a power or right.
	(3)	The requirement in this subsection is satisfied if:
	(a)	the trustee is under an obligation to treat the *members who hold interests of the same class equally and members who hold interests of different classes fairly; and
	(b)	the constituent documents of the trust can only be modified, or repealed or replaced with new constituent documents:
	(i)	by the trustee, if the trustee reasonably considers that the change will not adversely affect members’ rights; or
	(ii)	by a resolution that has been passed by at least 75% of the votes cast by members entitled to vote on the resolution; or
	(iii)	by a resolution that has been passed by at least 50% of the total votes that may be cast by members entitled to vote on the resolution (including members who are not present in person or by proxy).
	(4)	The requirement in this subsection is satisfied if the Commissioner considers that it is reasonable to conclude that the right of each member of the trust to the income and capital of the trust are clearly defined at that time.
	(5)	In making a decision under subsection (4), the Commissioner must consider:
	(a)	the constituent documents of the trust; and
	(b)	any other matter that the Commissioner considers relevant.
276‑20  Trust with classes of interests—each class treated as separate AMIT
	(1)	Subsection (2) applies if:
	(a)	the interests in the income and capital of an *AMIT for an income year are divided into classes; and
	(b)	the rights arising from each of those interests in a particular class are the same as the rights arising from every other of those interests in that class; and
	(c)	each of those interests in a particular class are distinct from each of those interests in another class; and
	(d)	the trustee of the AMIT has made a choice in accordance with this section that applies to the income year.
	(2)	For the purposes of this Division (other than this Subdivision), treat each class of those interests in the *AMIT as being a separate AMIT for that income year.
Note:	The operation of the section is modified in relation to section 276‑420 (substantial overall base year shortfall): see section 276‑425.
	(3)	The trustee of a trust may make a choice for the purposes of paragraph (1)(d) in writing.
	(4)	The way the trust’s *income tax return is prepared for an income year is sufficient evidence of the making of the choice in that income year.
	(5)	The choice cannot be revoked.
	(6)	The choice applies to the income year in which it is made and every subsequent income year.
Guide to Subdivision 276‑B
276‑50  What this Subdivision is about
A member of an AMIT for an income year has a vested and indefeasible interest in a share of income and capital of the AMIT throughout the income year.
Table of sections
Operative provisions
276‑55	Member of AMIT taken to have vested and indefeasible interest in income and capital
Operative provisions
276‑55  Member of AMIT taken to have vested and indefeasible interest in income and capital
		For the purposes of this Act, treat a *member of an *AMIT for an income year as having a vested and indefeasible interest in a share of the income and capital of the AMIT throughout the income year.
Subdivision 276‑C—Taxation of member components
Guide to Subdivision 276‑C
276‑75  What this Subdivision is about
This Subdivision implements an attribution model for the taxation of AMITs.
Amounts related to income and tax offsets of an AMIT, determined by the trustee to be of a particular AMIT character, are attributed to members, generally retaining that character.
Table of sections
Taxation of member on taxable member components
276‑80	Member taxed on taxable member components
276‑85	Relationship between section 276‑80 and withholding rules
276‑90	Relationship between section 276‑80 and other charging provisions in this Act
Taxation of trustee on taxable member components
276‑95	Trustee taxed on foreign resident member’s components—non‑trustee beneficiary
276‑100	Refundable tax offset for foreign resident member
276‑105	Trustee taxed on foreign resident member’s components—trustee beneficiary
276‑110	Deduction from beneficiary’s tax
Taxation of member on taxable member components
276‑80  Member taxed on taxable member components
Components of income, exempt or NANE AMIT character
	(1)	Subsection (2) applies if a *member of an *AMIT for an income year has, for the income year, a *taxable member component of:
	(a)	an *income AMIT character; or
	(b)	an *exempt AMIT character; or
	(c)	the *NANE AMIT character.
	(2)	The *taxable member component has an effect mentioned in subsection (3) for the *member in the same way as an amount of that *AMIT character would have that effect if the member had derived, received or made the amount reflected in the taxable member component:
	(a)	in the member’s own right (rather than as a member of a trust); and
	(b)	in the same circumstances as the *AMIT derived, received or made the amount that is reflected in that taxable member component, to the extent that those circumstances gave rise to the particular AMIT character of that component.
	(3)	The effects are as follows:
	(a)	including an amount in the assessable income of the *member;
	(b)	including an amount in the *exempt income of the member;
	(c)	including an amount in the *non‑assessable non‑exempt income of the member;
	(d)	determining whether the member has made a *capital gain from a *CGT event;
	(e)	determining the extent to which the member’s *net capital loss has been *utilised.
Example:	The taxable member component has the AMIT character of foreign source income. It is included in the member’s assessable income in the same way as foreign source income would be included in the member’s assessable income had the member derived or made it in the member’s own right. If the member is a foreign resident, this inclusion is limited by the rules in subsection 6‑10(5).
	(4)	If the *taxable member component is of the *AMIT character mentioned in item 1 or 2 of the table in subsection 276‑150(2) (discount capital gain), for the purposes of this section, treat the amount of the component as being double what it would be apart from this subsection.
Components of offset AMIT character
	(5)	Subsection (6) applies if a *member of an *AMIT for an income year has, for the income year, a *taxable member component of an *offset AMIT character.
	(6)	The *taxable member component has an effect mentioned in subsection (7) for the *member in the same way as an amount of that *AMIT character would have that effect if the member had paid or received the amount reflected in the taxable member component:
	(a)	in the member’s own right (rather than as a member of a trust); and
	(b)	in the same circumstances as the *AMIT paid or received the amount that is reflected in that taxable member component.
	(7)	The effects are as follows:
	(a)	entitling the member to a *tax offset;
	(b)	entitling the member to a credit under Division 18 of Schedule 1 to the Taxation Administration Act 1953.
Exceptions
	(8)	The circumstances mentioned in paragraph (2)(b) or (6)(b) do not include the following:
	(a)	the residence of the trustee of the *AMIT;
	(b)	the place of the central management and control of the AMIT;
	(c)	the status of the trustee of the AMIT as a qualified person (or as not a qualified person) in relation to a distribution, for the purposes of Division 1A of former Part IIIAA of the Income Tax Assessment Act 1936.
	(9)	Paragraphs (2)(a) and (6)(a) do not apply for the purpose of determining the status of the *member as a qualified person (or as not a qualified person) in relation to a distribution, for the purposes of Division 1A of former Part IIIAA of the Income Tax Assessment Act 1936.
276‑85  Relationship between section 276‑80 and withholding rules
	(1)	Subsection 276‑80(2) does apply to the extent that the *taxable member component is reflected in an *AMIT DIR payment or a *fund payment.
	(2)	Subsection 276‑80(2) does not affect the operation of the following:
	(a)	Division 11A of Part IIIA of the Income Tax Assessment Act 1936;
	(b)	Subdivision 840‑M of this Act;
	(c)	Division 12 of Schedule 1 to the Taxation Administration Act 1953.
Note	See Division 12A of Schedule 1 to the Taxation Administration Act 1953 for provisions about withholding tax that apply specifically to AMITs.
276‑90  Relationship between section 276‑80 and other charging provisions in this Act
	(1)	This section applies if:
	(a)	an amount is included in the assessable income of a *member of an *AMIT for an income year in respect of the member’s interest in the AMIT; and
	(b)	that amount is so included otherwise than because of the operation of subsection 276‑80(2).
	(2)	Reduce the amount included in the assessable income of the *member as mentioned in subsection (1) to the extent (if any) that a corresponding amount is included in the assessable income of the member in respect of the member’s interest in the *AMIT because of the operation of subsection 276‑80(2).
	(3)	To avoid doubt, this section is subject to section 230‑20 (financial arrangements).
Foreign resident members—taxation of trustee and corresponding tax offset or deduction for members
276‑95  Trustee taxed on foreign resident member’s components—non‑trustee beneficiary
	(1)	This section applies if:
	(a)	a *member of an *AMIT for an income year has a *taxable member component of an *income AMIT character in respect of the AMIT, in relation to the income year; and
	(b)	the member is not, in respect of that taxable member component, a beneficiary in the capacity of a trustee of another trust; and
	(c)	the member is a foreign resident at the end of the income year.
	(2)	The trustee of the *AMIT is to be assessed and is liable to pay income tax:
	(a)	if the *member is not a company—in respect of the amount mentioned in subsection (3) as if it were the income of an individual and were not subject to any deduction; or
	(b)	if the member is a company—in respect of the amount mentioned in subsection (3) at the rate declared by the Parliament for the purposes of this paragraph.
	(3)	The amount is the *taxable member component, to the extent that the component is either of the following:
	(a)	attributable to a period when the member was a resident;
	(b)	attributable to a period when the member was not a resident and attributable to sources in Australia.
	(4)	Subsection (2) does apply to the extent that the *taxable member component is reflected in an *AMIT DIR payment or a *fund payment.
Gross‑up for discount capital gain
	(5)	Subsection (6) applies if a *taxable member component is of the *AMIT character mentioned in item 1 or 2 of the table in subsection 276‑150(2) (discount capital gain).
	(6)	For the purposes of this section, treat the amount of the component as being double what it would be apart from this subsection.
276‑100  Refundable tax offset for foreign resident member
	(1)	This section applies if a trustee is assessed and liable to pay income tax under section 276‑95 (about foreign resident members) in respect of a *member.
	(2)	The *member is entitled to a *tax offset for the income year equal to the tax paid by the trustee in accordance with subsection 276‑95(2).
	(3)	The *tax offset is subject to the refundable tax offset rules.
276‑105  Trustee taxed on foreign resident member’s components—trustee beneficiary
	(1)	This section applies if:
	(a)	a *member of an *AMIT for an income year has a *taxable member component of an *income AMIT character in respect of the AMIT, in relation to the income year; and
	(b)	the member is, in respect of that taxable member component, a beneficiary in the capacity of a trustee of another trust; and
	(c)	a trustee of the other trust is a foreign resident at the end of the income year.
	(2)	The trustee of the *AMIT is to be assessed and is liable to pay income tax in respect of the amount mentioned in subsection (3) at the rate declared by the Parliament for the purposes of this paragraph.
	(3)	Subsection (2) does apply to the extent that the *taxable member component is reflected in an *AMIT DIR payment or a *fund payment.
	(4)	This section does not apply to a *taxable member component of an *AMIT character of a kind mentioned in:
	(a)	item 2 or 4 of the table in subsection 276‑150(2) (capital gain on non‑taxable Australian property); or
	(b)	item 9 of the table in subsection 276‑150(2) (foreign source income).
Gross‑up for discount capital gain
	(5)	Subsection (6) applies if a *taxable member component is of the *AMIT character mentioned in item 1 of the table in subsection 276‑150(2) (discount capital gain).
	(6)	For the purposes of this section, treat the amount of the component as being double what it would be apart from this subsection.
276‑110  Deduction from beneficiary’s tax
	(1)	This section applies to a beneficiary of a trust for an income year if the assessable income of the beneficiary for the year includes an amount covered by subsection (2).
	(2)	This subsection covers an amount (the assessable amount) if:
	(a)	the amount is included in the assessable income of the beneficiary under one of the following:
	(i)	section 276‑80;
	(ii)	section 97 of the Income Tax Assessment Act 1936;
	(iii)	subsection 98A(3) of that Act;
	(iv)	section 100 of that Act; and
	(b)	the amount does not represent income of the trust attributed to the beneficiary under section 276‑80 or to which the beneficiary is presently entitled in the capacity of a trustee of another trust; and
	(c)	the amount is reasonably attributable to an amount (the taxed component) in respect of which the trustee of an *AMIT is assessed and liable to pay tax (the subsection 276‑105(2) tax) under subsection 276‑105(2).
	(3)	A proportion of the subsection 276‑105(2) tax is to be deducted from the income tax assessed against the beneficiary for the income year. That proportion is the same as the proportion of the taxed component that gave rise to the assessable amount.
Note:	To work out the proportion of the taxed component that gives rise to the assessable amount, you would have regard to the share of the income of each trust interposed between the AMIT and the trust first mentioned in subsection (1) to which a beneficiary (including a beneficiary in the capacity of a trustee) is presently entitled.
	(4)	If the amount to be deducted under subsection (3) is greater than the amount of the income tax assessed against the beneficiary, the Commissioner must pay to the beneficiary an amount equal to the difference between those 2 amounts.
Note:	See Division 3A of Part IIB of the Taxation Administration Act 1953 for the rules about how the Commissioner must pay the entity. Division 3A of Part IIB allows the Commissioner to apply the amount owing as a credit against tax debts that the entity owes to the Commonwealth.
Subdivision 276‑D—AMIT characters
Guide to Subdivision 276‑D
276‑145  What this Subdivision is about
An amount may be a certain specified AMIT character. There are 4 broad types of AMIT character: income AMIT character, exempt AMIT character, NANE AMIT character and offset AMIT character. Some of these types are divided into particular kinds of amount of the relevant AMIT character.
Table of sections
AMIT character
276‑150	The AMIT characters
AMIT character
276‑150  The AMIT characters
	(1)	Each kind of amount set out in an item of a table in this section (including each kind of amount specified in a legislative instrument made under subsection (7)) is an AMIT character.
Income AMIT character
	(2)	Each *AMIT character set out in this table (including each kind of amount specified in a legislative instrument mentioned in item 10) is an income AMIT character.

Income AMIT characters	
Item	Kind of amount	
1	*Discount capital gain from a *CGT asset that is *taxable Australian property	
2	*Discount capital gain from a *CGT asset that is not *taxable Australian property	
3	*Capital gain (other than a *discount capital gain) from a *CGT asset that is *taxable Australian property	
4	*Capital gain (other than a *discount capital gain) from a *CGT asset that is not *taxable Australian property	
5	Amount included in assessable income under subsection 207‑20(1) (franking credit gross‑up)	
6	Amount on which *income tax would be payable under subsection 128B(4) of the Income Tax Assessment Act 1936 if it had been derived by an entity that was not an *Australian resident (dividend)	
7	Amount on which *income tax would be payable under subsection 128B(5) of the Income Tax Assessment Act 1936 if it had been derived by an entity that was not an *Australian resident (interest)	
8	Amount on which *income tax would be payable under subsection 128B(5A) of the Income Tax Assessment Act 1936 if it had been derived by an entity that was not an *Australian resident (royalty)	
9	*Ordinary income or *statutory income from a source other than an *Australian source	
10	*Ordinary income or *statutory income of a kind specified in a legislative instrument as mentioned in paragraph (7)(a)	
11	*Ordinary income or *statutory income not covered by another item of this table	
Exempt AMIT character
	(3)	Each *AMIT character set out in this table (including each kind of amount specified in a legislative instrument mentioned in item 2) is an exempt AMIT character.

Exempt AMIT characters	
Item	Kind of amount	
1	*Net exempt income:
(a) worked out under subsection 36‑20(2) (about net exempt income for foreign residents); and
(b) not covered by another item of this table	
2	*Net exempt income of a kind specified in a legislative instrument as mentioned in paragraph (7)(b)	
3	*Net exempt income not covered by another item of this table	
NANE AMIT character
	(4)	The *AMIT character set out in this table is the NANE AMIT character.

NANE AMIT character	
Item	Kind of amount	
1	*Non‑assessable non‑exempt income of a kind covered by subsection (5)	
	(5)	This subsection covers *non‑assessable non‑exempt income from all sources, to the extent that it exceeds the total of:
	(a)	the losses and outgoings (except capital losses and outgoings) incurred in deriving that non‑assessable non‑exempt income; and
	(b)	any taxes payable outside Australia on that non‑assessable non‑exempt income.
Offset AMIT character
	(6)	Each *AMIT character set out in this table (including each kind of amount specified in a legislative instrument mentioned in item 3) is an offset AMIT character.

Offset AMIT characters	
Item	Kind of amount	
1	*Franking credit	
2	*Foreign income tax paid by the trust	
3	An amount of a kind specified in a legislative instrument as mentioned in paragraph (7)(c)	
Legislative instrument may specify further AMIT characters
	(7)	The Commissioner may, by legislative instrument, specify kinds of amount for the purposes of any of the following provisions:
	(a)	item 10 of the table in subsection (2) (about *ordinary income and *statutory income);
	(b)	item 2 of the table in subsection (3) (about *net exempt income);
	(c)	item 3 of the table in subsection (6) (about *tax offsets).
	(8)	However, the Commissioner cannot specify in a legislative instrument under subsection (7) a kind of amount that is mentioned in another item in a table in subsection (2), (3) or (6).
Subdivision 276‑E—Member components
Guide to Subdivision 276‑E
276‑200  What this Subdivision is about
This Subdivision sets out rules for how an AMIT works out its member component, determined member component and taxable member component of a particular AMIT character.
Table of sections
Member‑level concepts
276‑205	Meaning of taxable member component
276‑210	Meaning of determined member component
276‑215	Meaning of member component
Member‑level concepts
276‑205  Meaning of taxable member component
	(1)	The taxable member component of a particular *AMIT character for an income year of a *member of an *AMIT for the income year is the member’s *determined member component of that character for the income year.
	(2)	Subsection (6) applies if:
	(a)	the *member makes a choice for the purposes of this paragraph in accordance with subsection (3); and
	(b)	the member gives a notice of the choice to the trustee of the *AMIT in accordance with subsection (5).
	(3)	The choice must:
	(a)	be in writing, and
	(b)	state the following matters:
	(i)	the income year to which the choice relates;
	(ii)	what the *member considers to the member’s *member component of that character for the income year;
	(iii)	the reason why the member considers that the *determined member component of that character for the income year does not accord with subsections 276‑215(2), (3) and (4); and
	(c)	be given to the Commissioner within 4 months after the end of the member’s income year.
	(4)	The way the *member’s *income tax return is prepared is sufficient evidence of the making of the choice.
	(5)	The notice must:
	(a)	be in writing, and
	(b)	state the following matters:
	(i)	the income year to which the notice relates;
	(ii)	what the *member considers to the member’s *member component of that character for the income year;
	(iii)	the reason why the member considers that the *determined member component of that character for the income year does not accord with subsections 276‑215(2), (3) and (4); and
	(c)	be given to the trustee within 4 months after the end of the member’s income year.
	(6)	Despite subsection (1), if the *determined member component of that character for the income year does not accord with subsections 276‑215(2), (3) and (4), the *member’s taxable member component of that character for the income year is the member’s *member component of that character for the income year.
	(7)	For the purposes of subsection (6), in working out the member’s *member component of that character for the income year, treat the references in section 276‑215 to *determined trust component to be instead references to *trust component.
276‑210  Meaning of determined member component
	(1)	The determined member component of a particular *AMIT character for an income year of a *member of an *AMIT for the income year is the amount stated to be the member’s *member component of that AMIT character in the AMIT’s latest *AMMA statement for the member for the income year.
	(2)	A *member cannot have more than one *determined member component of a particular *AMIT character for the trust for the income year (although a member may have several determined member components for the trust for the income year, each of a separate AMIT character).
276‑215  Meaning of member component
	(1)	This section applies to a *member of an *AMIT for an income year and sets out how to work out the member’s *member components of each *AMIT character of which the AMIT has a *determined trust component for the year.
Meaning of member component
	(2)	The *member’s member component of an *AMIT character is so much of the *determined trust component of that character as is attributable to the *membership interests in the *AMIT held by the member, worked out in accordance with the requirements in subsections (3) and (4).
Attribution must be fair and reasonable and accord with constituent documents
	(3)	The attribution must be worked out on a fair and reasonable basis, in accordance with the constituent documents of the *AMIT. This requirement is subject to the requirement in subsection (4).
Attribution must not involve streaming of character amounts
	(4)	The attribution must not, to any extent, attribute any part of a *determined trust component of a particular *AMIT character to a *member’s *membership interests because of the tax characteristics of the member.
	(5)	Without limiting the scope of the requirements in subsection (3) and (4), an amount does not fail to be worked out in accordance with those requirements as mentioned in subsection (2) merely because the amount reflects the fact that:
	(a)	the constituent documents of the *AMIT give the trustee of the AMIT the power to direct an amount arising from the sale of an asset to a particular *member, if:
	(i)	the member redeems one or more *membership interests in the AMIT; and
	(ii)	the direction of the amount is made to fund the redemption; and
	(b)	the trustee exercises that power.
	(6)	Without limiting the scope of the requirements in subsection (3) and (4), an amount does not fail to be worked out in accordance with those requirements as mentioned in subsection (2) merely because the amount reflects that fact that:
	(a)	the activities of the *AMIT give rise to an economic benefit or economic detriment for its *members at a time (the activity time); and
	(b)	the amount of the *trust components of the AMIT for an income year ending after the activity time are affected by those activities; and
	(c)	an entity is a member of the AMIT at a time in that income year, but was not a member of the AMIT at the activity time.
	(7)	Without limiting the scope of the requirements in subsection (3) and (4), an amount does not fail to be worked out in accordance with those requirements as mentioned in subsection (2) merely because the amount reflects the fact that:
	(a)	either:
	(i)	an amount of an *under, relating to a base year (as mentioned in subsection 276‑355(1)) increases a *trust component of the *AMIT for a later income year under section 276‑345; or
	(ii)	an amount of an *over, relating to a base year (as mentioned in subsection 276‑355(1)) decreases a trust component of the AMIT for a later income year under section 276‑345; and
	(b)	an entity is a *member of the AMIT at a time in the later income year, but was not a member of the AMIT at a time in the base year.
Subdivision 276‑F—Trust components
Guide to Subdivision 276‑F
276‑265  What this Subdivision is about
This Subdivision sets out how an AMIT works out its trust component and determined trust component of a particular AMIT character.
Table of sections
Trust‑level concepts
276‑270	Meaning of determined trust component
276‑275	Document that determines amounts
276‑280	Meaning of trust component
276‑285	Rules for working out trust components—general rules
276‑290	Rules for working out trust components—allocation of deductions
Trust‑level concepts
276‑270  Meaning of determined trust component
		A trust’s determined trust component of a particular *AMIT character for an income year is the amount stated to be its *trust component of that AMIT character in a document that meets the requirements in section 276‑275 in respect of the amount for the income year.
276‑275  Document that determines amounts
	(1)	A document meets the requirements in this section in respect of an amount for an income year if the following requirements are met:
	(a)	the document is created by an *AMIT for an income year;
	(b)	the document states the amount expressly;
	(c)	at a time after the document was created, the AMIT sends an *AMMA statement for the income year to an entity that was a *member of the AMIT at any time during the income year.
	(2)	If, apart from this subsection, there are 2 or more documents that meet the requirements in this section in respect of the amount for the income year, treat the most recently created of those documents as being the only document that meets the requirements in this section in respect of the amount for the income year.
Example:	The income year for the AMIT ends on 30 June. The trustee creates a document stating the amount for the income year on 1 July. It sends all AMMA statements on 10 July. The trustee creates another document stating a different amount for the income year on 1 September. It sends revised AMMA statements reflecting that amount on 10 September. The document created on 1 September is the only document that meets the requirements in this section in respect of the amount for the income year.
276‑280  Meaning of trust component
	(1)	A trust has a trust component of a particular *AMIT character for an income year equal to the amount of that AMIT character for the income year worked out in relation to the trust in accordance with the rules in sections 276‑285 and 276‑290.
Note:	See Subdivision 276‑G for the effect of unders and overs on the amount of a trust component.
	(2)	The rules in sections 276‑285 and 276‑290 apply only for the purposes of determining the amount of a *trust component of a particular *AMIT character a trust has for an income year.
276‑285  Rules for working out trust components—general rules
General residence assumption to be made
	(1)	Work out the amount of the *trust component of each *AMIT character in relation to the trust assuming that the trust’s trustee:
	(a)	was liable to pay *tax; and
	(b)	was an Australian resident.
Withholding tax provisions to be disregarded
	(2)	Despite section 840‑815 of this Act and section 128D of the Income Tax Assessment Act 1936, an amount on which *withholding tax is payable is not *non‑assessable non‑exempt income of the trust.
Amount cannot have more than one AMIT character
	(3)	An amount cannot have more than one *AMIT character.
Trust components of income AMIT character are net of deductions
	(4)	The sum of all of the trust components of the trust for the income year must equal the total assessable income of the trust for the income year (worked out making the assumptions in subsection (1) and applying subsections (2) and (3)), less all allowable deductions.
	(5)	However, if that total assessable income does not exceed those deductions, the sum of all of the trust components of the trust for the income year must equal zero.
Disregard unders and overs from previous years
	(6)	Disregard an *under or *over that the *AMIT had in a previous income year.
Note:	An under or over that the AMIT had in a previous income year will be reflected in the AMIT’s trust component for that previous year in accordance with section 276‑345. Sections 276‑520 and 276‑525 provide for taxation of the trustee in respect of amounts of the under or over not so reflected.
276‑290  Rules for working out trust components—allocation of deductions
	(1)	An amount of a deduction that relates directly only to one or more amounts of assessable income can be deducted only against that amount or those amounts of assessable income. If there are 2 or more such amounts of assessable income, the amount of the deduction is allocated against those amounts on a reasonable basis.
	(2)	If an amount of a deduction remains after applying the rules in subsection (1), the remainder can be deducted against other amounts of assessable income. The amount of the remainder is allocated against those amounts on a reasonable basis.
	(3)	For the purposes of this section, determine whether a deduction relates directly to an amount of assessable income on a reasonable basis.
Subdivision 276‑G—Unders and overs
Guide to Subdivision 276‑G
276‑335  What this Subdivision is about
This Subdivision sets out how under‑estimations and over‑estimations of amounts at the trust level are carried forward and dealt with in later years. This is done on a character‑by‑character basis.
An under‑estimation in an income year of a particular character results in an “under” of that character. An over‑estimation results in an “over” of that character.
“Unders” and “overs” arise, and are dealt with, in the income year in which they are discovered.
Table of sections
Modified calculation of trust component for unders, overs and uplifts
276‑340	Application
276‑345	Modified calculation of trust component for unders, overs and uplifts
276‑350	Trustee taxed on negative result for offset characters
Unders and overs
276‑355	Meaning of under and over of an AMIT character
276‑360	Reduction in over of income AMIT character and of under of offset AMIT character due to choice under paragraph 276‑205(2)(a)
276‑365	Limited discovery period for unders and overs
Modified calculation of trust component for unders, overs and uplifts
276‑340  Application
		This Subdivision applies if a trust is an *AMIT for an income year.
276‑345  Modified calculation of trust component for unders, overs and uplifts—income, exempt and NANE AMIT characters
Calculation for AMIT characters other than offsets
	(1)	The trust’s trust component of an *AMIT character (other than an *offset AMIT character) for the income year is the amount worked out as follows:

where:
basic character amount means the amount of that character worked out in relation to the trust under section 276‑280 for the income year.
carry‑forward trust component deficit means the trust’s *carry‑forward trust component deficit for the income year.
Note:	The trust’s carry‑forward trust component deficit for the income year is worked out in respect of the previous income year under paragraph (2)(d).
cross‑character allocation amount means the total of:
	(a)	the amount or amounts allocated to the *trust component in accordance with subsection (3); and
	(b)	if that character is the *income AMIT character mentioned in item 9 of the table in subsection 276‑150(2) (foreign source income)—the amount of the increase (if any) for the income year under subsection 276‑350(4) (trust component deficit of FITO character).
total overs means the total of all the *overs (if any) the trust has of that character in the income year, relating to all base years.
total unders means the total of all the *unders (if any) the trust has of that character in the income year, relating to all base years.
total uplifts means the total of all the uplifts (worked out under Subdivision 276‑H) for that character that take effect in the income year, relating to all base years.
Trust component deficit and consequences
	(2)	If the amount worked out using the formula in subsection (1) for an *AMIT character is a negative amount:
	(a)	the trust’s trust component of that character for the income year is nil; and
	(b)	the negative amount (expressed as a positive amount) is the trust’s trust component deficit of that character for the income year; and
	(c)	if that character is an income AMIT character—allocate that trust component deficit against the trust’s trust components of other income AMIT characters for that income year in accordance with subsection (3); and
	(d)	if there is any amount of that trust component deficit remaining after applying it in accordance with subsection (3)—that remaining amount is the trust’s carry‑forward trust component deficit for the next income year.
Trust component deficit allocated between trust components of other characters
	(3)	In allocating that *trust component deficit against the trust’s *trust components of other *income AMIT characters for that income year as mentioned in paragraph (2)(c), apply the following rules:
	(a)	allocate that trust component deficit between the trust components of other characters on a reasonable basis;
	(b)	the maximum amount that can be allocated to a trust component of another character is the amount of that trust component (disregarding this subsection).
276‑350  Modified calculation of trust component for unders, overs and uplifts—offset AMIT characters
Calculation for offset AMIT characters
	(1)	The trust’s trust component of an *offset AMIT character for the income year is the amount worked out as follows:

where:
basic character amount means the amount of that character worked out in relation to the trust under section 276‑280 for the income year.
total overs means the total of all the *overs (if any) the trust has of that character in the income year, relating to all base years.
total unders means the total of all the *unders (if any) the trust has of that character in the income year, relating to all base years.
total uplifts means the total of all the uplifts (worked out under Subdivision 276‑H) for that character that take effect in the income year, relating to all base years.
Trust component deficit and consequences
	(2)	If the amount worked out using the formula in subsection (1) for an *AMIT character is a negative amount:
	(a)	the trust’s trust component of that character for the income year is nil; and
	(b)	the negative amount (expressed as a positive amount) is the trust’s trust component deficit of that character for the income year; and
	(c)	unless paragraph (d) applies—subsection (3) applies; and
	(d)	if that character is the character mentioned in item 2 of the table in subsection 276‑150(6) (foreign tax paid)—subsection (4) applies.
Trustee taxed on trust component deficit for offset characters
	(3)	The trustee is liable to pay income tax at the rate declared by the Parliament on the *trust component deficit mentioned in paragraph (2)(b).
Note:	The tax is imposed by the Income Tax (Managed Investment Trust (Offset Overs)) Act 2015 and the rate of the tax is set out in that Act.
Trust component deficit of FITO character increases foreign source income
	(4)	In working out the trust’s *trust component of the *income AMIT character mentioned in item 9 of the table in subsection 276‑150(2) (foreign source income) for the income year mentioned in subsection (1), increase the cross‑character allocation amount mentioned in that subsection by the sum of:
	(a)	the *trust component deficit mentioned in paragraph (2)(b); and
	(b)	the product of:
	(i)	that trust component deficit; and
	(ii)	the *corporate tax gross‑up rate.
Unders and overs
276‑355  Meaning of under and over of an AMIT character
	(1)	This section sets out how to work out whether a trust has an *under or an *over of a particular *AMIT character in an income year (the discovery year) relating to an earlier income year (the base year).
 	(2)	The time (the discovery time) at which this is worked out for a particular discovery year is just before the trustee works out the *determined trust component of that *AMIT character for the discovery year.
Note:	This allows unders and overs to be included in the determined trust component for the discovery year: see section 276‑345.
	(3)	For each *AMIT character for a particular base year, compare:
	(a)	the trust’s *trust component, worked out on the basis of the trustee’s knowledge at the discovery time (the discovery year amount); and
	(b)	the trust’s *determined trust component (the previous year amount).
A shortfall is an under
	(4)	If the previous year amount falls short of the discovery year amount, the amount of the shortfall is an under of that *AMIT character, relating to the base year, that the trust has in the discovery year.
An excess is an over
	(5)	If the previous year amount exceeds the discovery year amount, the amount of the excess is an over of that *AMIT character, relating to the base year, that the trust has in the discovery year.
Running balance for determined trust component
	(6)	However, if the discovery year is not the first income year after the base year, the previous year amount in paragraph (3)(b):
	(a)	is not the trust’s *determined trust component; and
	(b)	is instead the discovery year amount worked out under this section for the most recent income year before the discovery year.
Nil amounts
	(7)	For the purposes of this section:
	(a)	if a trust has no *trust component of a particular *AMIT character, treat the trust as having a trust component of nil of that AMIT character; and
	(b)	if a trust has no *determined trust component of a particular AMIT character, treat the trust as having a determined trust component of nil of that AMIT character.
276‑360  Reduction in over of income AMIT character and of under of offset AMIT character due to choice under paragraph 276‑205(2)(a)
	(1)	If:
	(a)	a *member of an *AMIT makes a choice for the purposes of paragraph 276‑205(2)(a) in relation to its *taxable member component of a particular *income AMIT character or *exempt AMIT character for an income year (the base year); and
	(b)	as a result of the choice that taxable member component falls short of the member’s *member component of that character for the base year; and
	(c)	the AMIT has an *over of that character for a later income year, relating to the base year;
decrease the amount of the *over by the amount of the shortfall.
Note:	The member’s taxable member component for the base year may not equal the member’s member component for the base year if the AMIT’s determined trust component for the base year does not equal its trust component for the base year (see subsection 276‑205(7).
	(2)	If:
	(a)	a *member of an *AMIT makes a choice for the purposes of paragraph 276‑205(2)(a) in relation to its *taxable member component of a particular *NANE AMIT character or *offset AMIT character for an income year (the base year); and
	(b)	as a result of the choice that taxable member component exceeds the member’s *member component of that character for the base year; and
	(c)	the AMIT has an *under of that character for a later income year, relating to the base year;
decrease the amount of the *under by the amount of the excess.
Note:	The member’s taxable member component for the base year may not equal the member’s member component for the base year if the AMIT’s determined trust component for the base year does not equal its trust component for the base year (see subsection 276‑205(7).
276‑365  Limited discovery period for unders and overs
		Despite section 276‑355, a trust does not have an *under or an *over of a particular *AMIT character relating to a base year if:
	(a)	assuming the Commissioner made an assessment of the *trust component of that character on the day on which the document stating the trust’s *determined trust component of that character relating to the base year was created; and
	(b)	assuming the assessment had not been amended at the discovery time for the under or over;
section 170 of the Income Tax Assessment Act 1936 would prevent the assessment from being amended to take account of the under or over.
Note:	Section 170 of the Income Tax Assessment Act 1936 specifies the usual period within which assessments may be amended.
Subdivision 276‑H—Uplifts for unders and overs
Guide to Subdivision 276‑H
276‑410  What this Subdivision is about
This Subdivision increases (uplifts) under‑ and over‑estimations in amounts at the trust level, if these are likely to be substantially revenue‑negative in relation to any particular base year.
Whether the Subdivision applies to a particular base year is worked out by comparing the overall net variance for that base year (across all discovery years) with the net variance threshold.
If the Subdivision does apply to a particular base year, section 276‑430 identifies the discovery years, and AMIT characters, for that base year for which unders and overs are required to be uplifted.
The uplifts are calculated under section 276‑435 using the rate for shortfall interest charge for the period from the standard return lodgement date for the base year to the end of the discovery year for the under or over.
Uplifts for a particular AMIT character are included in the first trust component of that character that is available, in the sense that the trustee has not yet determined that trust component at the time the uplift is calculated (which is when the net variance threshold is exceeded).
Table of sections
Operative provisions
276‑415	Application
276‑420	Affected base years—substantial overall base year shortfall
276‑425	Unders/overs for which an uplift must be calculated—modification for trust with classes of interests
276‑430	Unders/overs for which an uplift must be calculated
276‑435	Amount of the uplift
276‑440	Uplift takes effect in first available income year
Operative provisions
276‑415  Application
		This Subdivision applies if a trust is an *AMIT for an income year.
276‑420  Affected base years—substantial overall base year shortfall
	(1)	This Subdivision applies to a trust in relation to a base year if the trust has an *overall base year shortfall that exceeds the trust’s *net variance threshold for the base year.
Note:	An administrative penalty may also apply: see section 288‑115 in Schedule 1 to the Taxation Administration Act 1953.
Meaning of overall base year shortfall and overall base year excess
	(2)	To work out whether a trust has an *overall base year shortfall for a base year, sum the following amounts for the trust, relating to that base year:
	(a)	the total of all the *unders, less any *overs, of all *income AMIT characters, in all discovery years;
	(b)	the total of all the *unders, less any *overs, of all *exempt AMIT characters, in all discovery years;
	(c)	the total of all the *unders, less any *overs, of the *NANE AMIT character, in all discovery years;
	(d)	the total of all the overs, less any unders, of all *offset AMIT character in all discovery years.
Note:	Any of paragraphs (a) to (d) could be nil, or a negative amount.
	(3)	If the result is a positive amount, the trust has an overall base year shortfall for the base year equal to that amount.
	(4)	If the result is a negative amount, the trust has an overall base year excess for the base year equal to that amount (expressed as a positive amount).
Note:	No uplift needs to be calculated for a substantial overall base year excess. However, an administrative penalty may apply: see section 288‑115 in Schedule 1 to the Taxation Administration Act 1953.
Meaning of net variance threshold
	(5)	A trust’s net variance threshold for a base year is the greater of:
	(a)	5% of the sum of the trust’s *trust components for the base year; and
	(b)	0.4% of the value (determined in accordance with the *accounting principles) at the end of the base year of the net assets of the trust.
	(6)	For the purposes of this section, disregard a *trust component of the *income AMIT character mentioned in item 5 of the table in subsection 276‑150(2) (franking credit gross‑up amount).
276‑425  Unders/overs for which an uplift must be calculated—modification for trust with classes of interests
	(1)	This section applies if subsection 276‑20(2) applies to the trust mentioned in subsection 276‑420(2).
Note:	Under subsection 276‑20(2), each class of those interests in the trust is treated as being a separate AMIT.
	(2)	For the purposes of subsections 276‑20(2) and (5):
	(a)	subsection 276‑20(2) applies in working out the amount of the *unders, *overs and *trust components mentioned in those subsections; and
	(b)	subsection 276‑20(2) does not apply in working out:
	(i)	the totals mentioned in paragraphs 276‑420(2)(a) and (b); and
	(ii)	the sum mentioned in paragraph 276‑420(5)(a); and
	(iii)	the value mentioned in paragraph 276‑420(5)(b).
276‑430  Unders/overs for which an uplift must be calculated
Uplifting an under of an income AMIT character
	(1)	Calculate an uplift for an *under of an *income AMIT character a trust has in a discovery year if:
	(a)	the trust has the under in relation to a base year to which this Subdivision applies; and
	(b)	if the trust also has one or more *overs of an income AMIT character in the discovery year in relation to that base year—a positive amount of the under remains after applying each such over to reduce each such under in proportion to the amount of the under.
Uplifting an over of an offset AMIT character
	(2)	Calculate an uplift for an *over of an *offset AMIT character a trust has in a discovery year if:
	(a)	the trust has the over in relation to a base year to which this Subdivision applies; and
	(b)	if the trust also has one or more *unders of an offset AMIT character in the discovery year in relation to that base year—a positive amount of the over remains after applying each such under to reduce each such over in proportion to the amount of the over.
276‑435  Amount of the uplift
	(1)	The uplift is the amount of *shortfall interest charge that, if the assumptions in subsection (2) were made, would be payable on this amount (the upliftable amount):
	(a)	the *under or *over, unless paragraph (b) applies; or
	(b)	if paragraph 276‑430(1)(b) or (2)(b) applies—the positive remaining amount mentioned in that paragraph.
Assumptions for calculation of notional charge
	(2)	For the purpose of calculating the notional charge mentioned in subsection (1) on the upliftable amount, assume:
	(a)	a provision specified that the amount was an additional amount of income tax on which *shortfall interest charge was payable; and
	(b)	the liability to the charge was for each day in the period:
	(i)	beginning 4 months after the end of the base year; and
	(ii)	ending 4 months after the end of the discovery year for the *under or *over; and
	(c)	the charge remained unpaid throughout that period; and
	(d)	the rate of the charge (as worked out under subsection 280‑105(2) in Schedule 1 to the Taxation Administration Act 1953) for each day in that period was that rate for the last day of the discovery year.
276‑440  Uplift takes effect in first available income year
	(1)	An uplift for a discovery year in relation to a base year takes effect in the discovery year.
	(2)	However, the uplift takes effect in the threshold year for the base year, if the threshold year is a later year than the discovery year.
	(3)	For the purposes of subsection (2), the threshold year for a base year is the first year the trust’s *net variance threshold is exceeded by the *overall base year shortfall worked out having regard only to *unders and *overs the trust has in the year or an earlier year.
Subdivision 276‑J—Shortfall taxation
Guide to Subdivision 276‑J
276‑495  What this Subdivision is about
To be drafted.
Table of sections
Operative provisions
Ensuring determined trust components are properly taxed
276‑500	Trustee taxed on shortfall in single determined member component (income, exempt, NANE)
276‑505	Trustee taxed on excess in single determined member component (offset)
276‑510	No shortfall in relation to franking credit gross‑up amount
276‑515	Trustee taxed on amounts of trust component that cannot be reflected in member components
Ensuring unders and overs are properly taxed
276‑520	Trustee taxed on amounts of under of income character not properly carried forward
276‑525	Trustee taxed on amounts of over of offset character not properly carried forward
Operative provisions
Ensuring determined trust components are properly taxed
276‑500  Trustee taxed on shortfall in single determined member component (income, exempt, NANE)
Income character shortfall
	(1)	An *AMIT has a shortfall under this subsection for an income year equal to the amount (if any) by which:
	(a)	the *determined member component of an *income AMIT character of a *member of the AMIT for the income year;
falls short of:
	(b)	the *member component of that character of the member for the income year.
Exempt character shortfall
	(2)	An *AMIT has a shortfall under this subsection for an income year equal to the amount (if any) by which:
	(a)	the *determined member component of an *exempt AMIT character of a *member of the AMIT for the income year;
falls short of:
	(b)	the *member component of that character of the member for the income year.
NANE character excess
	(3)	An *AMIT has an excess under this subsection for an income year equal to the amount (if any) by which:
	(a)	the *determined member component of the *NANE AMIT character of a *member of the AMIT for the income year;
exceeds:
	(b)	the *member component of that character of the member for the income year.
Liability to tax
	(4)	The trustee is liable to pay income tax at the rate declared by the Parliament on each of the following amounts:
	(a)	the amount that is the sum of each shortfall of the *AMIT under subsection (1) for the income year;
	(b)	the amount that is the sum of each shortfall of the *AMIT under subsection (2) for the income year;
	(c)	the amount that is the sum of each excess of the *AMIT under subsection (3) for the income year.
276‑505  Trustee taxed on excess in single determined member component (offset)
	(1)	An *AMIT has an excess under this subsection for an income year equal to the amount (if any) by which:
	(a)	the *determined member component of an *offset AMIT character of a *member of the AMIT for the income year;
exceeds:
	(b)	the *member component of that character of the member for the income year.
Liability to tax
	(2)	The trustee is liable to pay income tax at the rate declared by the Parliament on the amount that is the sum of each excess of the *AMIT under subsection (1) for the income year.
Note:	The tax is imposed by the Income Tax (Managed Investment Trust (Excess Offsets)) Act 2015 and the rate of the tax is set out in that Act.
276‑510  No shortfall in relation to franking credit gross‑up amount
		For the purposes of section 276‑500, disregard any of the following:
	(a)	a *member component of the *income AMIT character mentioned in item 5 of the table in subsection 276‑150(2) (franking credit gross‑up amount);
	(b)	a *determined member component of that character;
	(c)	a *taxable member component of that character.
Note:	A member component with the character of a franking credit gross‑up amount may be included in a member’s assessable income as a result of subsection 276‑80(2), while the corresponding member component with the character of a franking credit may give rise to a corresponding tax offset for the member as a result of subsection 276‑80(6).
276‑515  Trustee taxed on amounts of determined trust component that are not reflected in determined member components
	(1)	An *AMIT has a shortfall under this subsection for an income year equal to the amount (if any) by which:
	(a)	the sum of all the *determined member components of a particular *income AMIT character of all the *members of the AMIT for the income year;
falls short of:
	(b)	the determined *trust component of that character of the AMIT for the income year.
Liability to tax
	(2)	The trustee is liable to pay income tax at the rate declared by the Parliament on the amount that is the sum of each shortfall of the *AMIT under subsection (1) for the income year.
Gross‑up for discount capital gain
	(3)	Subsection (4) applies if a *member component or *determined member component is of the *AMIT character mentioned in item 1 or 2 of the table in subsection 276‑150(2) (discount capital gain).
	(4)	For the purposes of this section, treat the amount of the component as being double what it would be apart from this subsection.
Ensuring unders and overs are properly taxed
276‑520  Trustee taxed on amounts of under of income character not properly carried forward
	(1)	An *AMIT for an income year has a shortfall under this subsection for the income year equal to the amount (if any) by which:
	(a)	an *under of the AMIT of an *income AMIT character in the income year relating to an earlier income year (the base year) (worked out on the basis of the trustee’s knowledge at the discovery time mentioned in subsection 276‑355(2));
falls short of:
	(b)	what the under would have been if it had been worked out on the basis of what the trustee should have known at that time.
Liability to tax
	(2)	The trustee is liable to pay income tax at the rate declared by the Parliament on the amount that is the sum of each shortfall of the *AMIT under subsection (1) for the income year.
Adjustment for later unders relating to the same base year
	(3)	For the purposes of applying subsection 276‑355(6) (Running balance for determined trust component) to a later income year, increase the amount mentioned in paragraph 276‑355(6)(b) (previous discovery year amount) by the amount of the shortfall.
	(4)	Subsection (5) applies if:
	(a)	there is a shortfall under subsection (1) of a particular *AMIT character for an income year; and
	(b)	the *AMIT has an *under of that character in a later income year relating to the base year mentioned in subsection (1); and
	(c)	the amount mentioned in paragraph (1)(b) is reflected (in whole or in part) in the amount of the under.
	(5)	Reduce the shortfall by the extent to which the *under in the later income year reflects the amount mentioned in paragraph (1)(b).
276‑525  Trustee taxed on amounts of over of offset character not properly carried forward
	(1)	An *AMIT for an income year has a shortfall under this subsection for the income year equal to the amount (if any) by which:
	(a)	an *over of the AMIT of an *offset AMIT character in the income year relating to an earlier income year (the base year) (worked out on the basis of the trustee’s knowledge at the discovery time mentioned in subsection 276‑355(2));
exceeds:
	(b)	what the over would have been if it had been worked out on the basis of what the trustee should have known at that time.
Liability to tax
	(2)	The trustee is liable to pay income tax at the rate declared by the Parliament on the amount that is the sum of each excess of the *AMIT under subsection (1) for the income year.
Adjustment for later overs relating to the same base year
	(3)	For the purposes of applying subsection 276‑355(6) (Running balance for determined trust component) to a later income year, decrease the amount mentioned in paragraph 276‑355(6)(b) (previous discovery year amount) by the amount of the shortfall.
	(4)	Subsection (5) applies if:
	(a)	there is an excess under subsection (1) of a particular *AMIT character for an income year; and
	(b)	the *AMIT has an *over of that character in a later income year relating to the base year mentioned in subsection (1); and
	(c)	the amount mentioned in paragraph (1)(b) is reflected (in whole or in part) in the amount of the over.
	(5)	Reduce the excess by the extent to which the *over in the later income year reflects the amount mentioned in paragraph (1)(b).
Subdivision 276‑K—AMMA statements
Guide to Subdivision 276‑K
276‑600  What this Subdivision is about
An AMIT for an income year must give each member of the AMIT an AMIT member annual statement (or AMMA statement) for the income year.
Table of sections
Operative provisions
276‑605	Obligation to give an AMMA statement
276‑610	AMIT member annual statement (or AMMA statement)
Operative provisions
276‑605  Obligation to give an AMMA statement
	(1)	An *AMIT for an income year must give each entity that was a *member of the AMIT at any time in the income year an *AMMA statement for the income year.
	(2)	The statement must be given no later than 3 months after the end of the income year.
	(3)	However, the *AMIT need not give an *AMMA statement under subsection (1) to an entity if:
	(a)	all of the entity’s *determined member components for the AMIT for the income year are nil; and
	(b)	all of the entity’s *membership interests in the AMIT have an *AMIT cost base net amount for the income year of nil.
	(4)	To avoid doubt, the *AMIT does not fail to comply with subsection (1) merely because:
	(a)	the AMIT gives *AMMA statements for the income year to entities in accordance with subsection (1) by the time required under subsection (2); and
	(b)	after that time, the AMIT gives those entities further AMMA statements for the income year that replace the AMMA statements mentioned in paragraph (a).
276‑610  AMIT member annual statement (or AMMA statement)
	(1)	An AMIT member annual statement (or AMMA statement) is a statement in writing made by an *AMIT for an income year in accordance with this section.
	(2)	The statement must be in the *approved form.
	(3)	The statement must:
	(a)	identify the *AMIT and the income year; and
	(b)	state the date on which the statement is made; and
	(c)	be addressed to an entity that is or was a *member of the AMIT at a time during the income year; and
	(d)	if an amount referable to that income year is to be distributed by the AMIT to the member, identify:
	(i)	that amount; and
	(ii)	the extent to which that amount is a distribution of the capital of the AMIT.
	(4)	The statement must also:
	(a)	include information that reflects the amount and *AMIT character of each *determined member component of the *member for the income year; and
	(b)	state the amount of the excess or shortfall mentioned in section 104‑107C (AMIT cost base net amount) for the income year in respect of the *CGT asset that is the member’s unit or interest in the AMIT.
	(5)	The statement must be given, no later than 3 years after the end of the income year, to each entity that was a *member of the *AMIT at any time in the income year.
Note:	The AMIT must give each of those entities an AMMA statement for the income year no later than 3 months after the end of the income year (see section 276‑605).
Subdivision 276‑L—Modification for non‑arm’s length income
Guide to Subdivision 276‑L
276‑665  What this Subdivision is about
The trustee of an AMIT in relation to an income year is taxed on amounts related to the AMIT’s non‑arm’s length income for the income year.
Table of sections
Operative provisions
276‑670	Trustee taxed on amount of non‑arm’s length income of AMIT
Operative provisions
276‑670  Trustee taxed on amount of non‑arm’s length income of AMIT
	(1)	Subsection (2) applies if:
	(a)	an amount of *non‑arm’s length income for an *AMIT in relation to an income year is reflected in one or more of the *AMIT’s *trust components for the income year (disregarding subsection (3)); and
	(b)	the *AMIT is a party to the *scheme mentioned in paragraph (5)(a) at a time in the income year in which the amount is derived; and
	(c)	at least one the parties to that scheme is not an *AMIT for the income year.
	(2)	The trustee is liable to pay income tax at the rate declared by the Parliament on the amount mentioned in subsection (4).
	(3)	Reduce each *trust component of the *AMIT for the income year by the amount mentioned in subsection (4), to the extent that the component is attributable to that amount.
	(4)	The amount is the excess mentioned in paragraph (5)(b) in respect of the *non‑arm’s length income, reduced by deductions (if any) that:
	(a)	are reflected in the amounts of the *AMIT’s *trust components for the income year (disregarding subsection (3)); and
	(b)	are attributable only to the amount of non‑arm’s length income.
	(5)	An amount of *ordinary income or *statutory income is non‑arm’s length income of an *AMIT for an income year if:
	(a)	it is derived from a *scheme the parties to which were not dealing with each other at *arm’s length in relation to the scheme; and
	(b)	that amount exceeds the amount that the entity might have been expected to derive if those parties had been dealing with each other at arm’s length in relation to the scheme; and
	(c)	the amount is none of the following:
	(i)	a distribution from a *corporate tax entity;
	(ii)	a distribution from a trust that is not a party to the scheme mentioned in paragraph (a);
	(iii)	a *return covered by subsection (6).
	(6)	This subsection covers a *return that an entity pays or provides on a *debt interest, if the rate (expressed on an annual basis) of the return does not exceed the greater of:
	(a)	the *benchmark rate of return for the interest; and
	(b)	the *base interest rate for the day on which the return is paid or provided, plus 3 percentage points.
Subdivision 276‑M—Debt‑like AMIT instruments
Guide to Subdivision 276‑M
276‑690  What this Subdivision is about
A debt‑like AMIT instrument in an AMIT is treated as a debt interest in the AMIT. A distribution in relation to the instrument is treated as interest for the purposes of provisions relating to interest withholding tax, and may treated as a deduction in working out the trust components of the AMIT.
Table of sections
Operative provisions
276‑695	Meaning of debt‑like AMIT instrument
276‑700	Debt‑like AMIT instruments treated as debt interests etc.
276‑710	Distribution on debt‑like AMIT instrument is deductible in working out trust components
Operative provisions
276‑695  Meaning of debt‑like AMIT instrument
		An instrument that gives rise to an interest in an *AMIT is a debt‑like AMIT instrument in relation to the AMIT if:
	(a)	any distribution relating to the interest:
	(i)	is fixed, at the time the interest was created, by reference to the amount subscribed for the interest; but
	(ii)	is solely at the discretion of the trustee of the AMIT; and

	(b)	the interest, and any other interest in the AMIT that is in the same *class as the interest, would rank above all *membership interests in the AMIT if:
	(i)	the trust ceases to exist; or
	(ii)	where the AMIT is a *managed investment scheme—the scheme is under administration or is being wound up; and
	(c)	in a case where, in relation to a particular period, the trustee of the AMIT does not make a distribution relating to the interest—making another distribution of any of the following kinds, in relation to that period, is prohibited by the constituent documents of the AMIT:
	(i)	a distribution relating to any membership interest in the AMIT;
	(ii)	a distribution relating to a membership interest in another entity, if that interest is stapled together with a membership interest in the AMIT.
276‑700  Debt‑like AMIT instruments treated as debt interests etc.
	(1)	For the purposes of this Act (other than Subdivisions 275‑A and 276‑A (meaning of MIT and AMIT)):
	(a)	treat a *debt‑like AMIT instrument in relation to an *AMIT as a *debt interest in the AMIT; and
	(b)	treat a distribution on a debt‑like AMIT instrument in relation to an AMIT as a cost incurred by the AMIT in relation to a debt interest issued by the AMIT.
	(2)	For the purposes of Division 11A of Part III of the Income Tax Assessment Act 1936, if an entity is the holder of a *debt‑like AMIT instrument in an *AMIT, treat a distribution to the entity in accordance with the instrument as interest.
276‑710  Distribution on debt‑like AMIT instrument is deductible in working out trust components
	(1)	If an entity is the holder of a *debt‑like AMIT instrument in an *AMIT, subsection 276‑285(4) or (5) applies as if a distribution to the entity in accordance with the instrument were an allowable deduction.
	(2)	For the purposes of subsection (1), disregard the distribution to the extent (if any) that it is attributable to any of the following:
	(a)	*exempt income of the *AMIT;
	(b)	*non‑assessable non‑exempt income of the AMIT.
Subdivision 276‑N—Ceasing to be an AMIT
Guide to Subdivision 276‑N
276‑750  What this Subdivision is about
To be drafted.
Table of sections
Operative provisions
276‑755	Application of Subdivision to former AMIT
276‑760	Continue to work out trust components, unders, overs, etc.
276‑765	Effect of increase
276‑770	Effect of decrease
Operative provisions
276‑755  Application of Subdivision to former AMIT
	(1)	This Subdivision applies if:
	(a)	a trust was an *AMIT for an income year; and
	(a)	the trust is not an *AMIT for a later income year (the discovery year).
276‑760  Continue to work out trust components, unders, overs, etc.
	(1)	For the purposes of this section, assume that the trust is an *AMIT for the discovery year.
	(2)	If the trust has an *under or *over of an *AMIT character in the discovery year relating to an earlier income year when the trust was an *AMIT, work out the extent to which section 276‑345 has the effect of:
	(a)	increasing the amount of that AMIT character worked out in relation to the trust under section 276‑280 for the discovery year (basic character amount); or
	(b)	decreasing that amount.
276‑765  Effect of increase
	(1)	This section applies if there is an increase as mentioned in paragraph 276‑760(2)(a).
	(2)	If the *AMIT character mentioned in subsection 276‑760(2) is an *income AMIT character, treat the amount of the increase as assessable income of the trust for the discovery year.
	(3)	If that *AMIT character is an *exempt AMIT character, treat the amount of the increase as *exempt income of the trust for the discovery year.
	(4)	If that *AMIT character is a *NANE AMIT character, treat the amount of the increase as *non‑assessable non‑exempt income of the trust for the discovery year.
	(5)	If that *AMIT character is an *offset AMIT character, treat the amount of the increase as a *tax offset of the trust for the discovery year of a kind corresponding to that character (in addition to any other tax offsets of that kind that the trust may have for the discovery year).
276‑770  Effect of decrease
	(1)	This section applies if there is a decrease as mentioned in paragraph 276‑760(2)(b).
	(2)	If the *AMIT character mentioned in subsection 276‑760(2) is an *income AMIT character:
	(a)	where that character is of a kind mentioned in item 1 or 2 of the table in subsection 276‑150(2) (discount capital gain)—treat half the amount of the decrease as a *capital loss of the trust for the discovery year; or
	(b)	where that character is of a kind mentioned in item 3 or 4 of the table in subsection 276‑150(2) (non‑discount capital gain)—treat the amount of the decrease as a capital loss of the trust for the discovery year; or
	(c)	in any other case—treat the amount of the decrease as a deduction of the trust for the discovery year.
	(3)	If that *AMIT character is an *exempt AMIT character, treat the amount of the decrease as reducing the *exempt income of the trust for the discovery year.
	(4)	If that *AMIT character is an *NANE AMIT character, treat the amount of the decrease as reducing the *non‑assessable non‑exempt income of the trust for the discovery year.
	(5)	If that *AMIT character is an *offset AMIT character, treat the amount of the decrease as reducing the *tax offset or offsets (the existing offset(s)) of the trust for the discovery year of a kind corresponding to that character.
	(6)	If that *AMIT character is an *offset AMIT character and exceeds the total of the existing offset(s) (before the reduction under subsection (5)), the trustee is liable to pay income tax at the rate declared by the Parliament on the excess.
Note:	The tax is imposed by the Income Tax (Managed Investment Trust (Offset Overs)) Act 2014 and the rate of the tax is set out in that Act.
Taxation Administration Act 1953
3  Before subsection 286‑75(2A) in Schedule 1
Insert:
	(2AB)	You are also liable to an administrative penalty if:
	(a)	you are required under section 276‑605 of the Income Tax Assessment Act 1997 (AMMA statements) to give information to an entity (other than the Commissioner) in a particular form by a particular day; and
	(b)	you do not give the information to the entity in that form by that day.
4  Paragraph 286‑80(2)(a) in Schedule 1
Before “(2A),”, insert “(2AB),”.
5  At the end of Division 288 in Schedule 1
Add:
288‑115  Penalty for managed investment trust with substantial net variance
	(1)	An entity is liable to an administrative penalty if:
	(a)	the entity is a trustee of an *AMIT for an income year (the base year); and
	(b)	the trust’s *overall base year shortfall or *overall base year excess for the base year exceeds the trust’s *net variance threshold for the base year; and
	(c)	at least one of the items in the table in subsection (2) applies.
	(2)	The amount of the penalty is 47% of the amount worked out using this table:

Amount of penalty	
Item	Column 1
In this situation …	Column 2
… in the case of an *overall base year shortfall, the amount is:	Column 3
… in the case of an *overall base year excess, the amount is:	
1	if the *overall base year shortfall or *overall base year excess resulted from intentional disregard of a *taxation law by the trustee (or any of the other trustees) of the *AMIT	75% of the overall base year shortfall	the greater of the following:
(a) 30% of the overall base year excess;
(b) 60 penalty units.	
2	if the *overall base year shortfall or *overall base year excess resulted from recklessness by the trustee (or any of the other trustees) of the *AMIT as to the operation of a *taxation law	50% of the overall base year shortfall	the greater of the following:
(a) 20% of the overall base year excess;
(b) 40 penalty units.	
	(3)	If 2 or more items in the table in subsection (2) apply and one of them produces a greater amount of penalty than any of the others, use that item.
	(4)	If the income year corresponds to a financial year that is a temporary budget repair levy year (within the meaning of section 4‑11 of the Income Tax (Transitional Provisions) Act 1997), treat the reference in subsection (2) to 47% as instead being a reference to 49%.
6  Subsection 298‑30(1) in Schedule 1
After “Division 284”, insert “or section 288‑115”.
Schedule 3—Withholding MITs and fund payments
  
Income Tax Assessment Act 1936
1  After subsection 128AF(1)
Insert:
	(1A)	However, this section does not apply if one or more of the interposed trusts is an AMIT for the year of income in which the payment is received.
Note	See Division 12A of Schedule 1 to the Taxation Administration Act 1953 for provisions about withholding tax that apply specifically to AMITs.
Taxation Administration Act 1953
2  Before section 12‑385 in Schedule 1
Insert:
12‑383  Meaning of withholding MIT
		A trust is a withholding MIT in relation to an income year if:
	(a)	it is a *managed investment trust in relation to that income year; and
	(b)	it is covered under subsection 275‑5(3) of the Income Tax Assessment Act 1997 in relation to that income year; and
	(c)	a substantial proportion of the investment management activities carried out in relation to the trust in respect of all of the following assets of the trust are carried out in Australia throughout the income year:
	(i)	assets that are situated in Australia at any time in the income year;
	(ii)	assets that are *taxable Australian property at any time in the income year;
	(iii)	assets that are *shares, units or interests listed for quotation in the official list of an *approved stock exchange in Australia at any time in the income year.
3  Subsection 12‑385(1)
Omit “*managed investment trust”, substitute “*withholding MIT”.
4  Section 12‑405 in Schedule 1 (heading)
Repeal the heading, substitute:
12‑405  Meaning of fund payment—general case
5  After subsection 12‑405(1) in Schedule 1
Insert:
	(1A)	This section applies to a trust that is not an *AMIT for an income year.
Note:	For the definition of fund payment in respect of a trust that is an AMIT for an income year, see section 12A‑115.
6  After Division 12
Insert:
Division 12A  Distributions by AMITs (including deemed payments)
Table of Subdivisions
Subdivision 12A‑A—Modifications in relation to dividend, interest and royalty distributions by AMITs
12A‑5  What this Subdivision is about
This Subdivision modifies the operation of this Part and Division 11A of Part III of the Income Tax Assessment Act 1936 in respect of a *withholding MIT that is an *AMIT.
12A‑10  Deemed payments—no obligation to withhold under Subdivision 12‑F
	(1)	If the entity that receives a payment as mentioned in subsection 12‑215(1), 12‑250(1) or 12‑285(1) is the trustee of an *AMIT, the entity need not withhold an amount under that subsection from the payment mentioned in that subsection if the payment arises because of the operation of section 12A‑200 (deemed payments).
Note:	The trustee may have to pay the Commissioner an amount in respect of the deemed payment (see Subdivision 12A‑C).
	(2)	Subsection (3) applies if:
	(a)	the entity that receives a payment as mentioned in subsection 12‑215(1), 12‑250(1) or 12‑285(1) is a *custodian; and
	(b)	it received the payment from an *AMIT.
	(3)	The entity need not withhold an amount under that subsection from the payment mentioned in subsection 12‑215(1), 12‑250(1) or 12‑285(1) if:
	(a)	the payment arises because of the operation of section 12A‑200 (deemed payments); or
	(b)	the payment is a *parallel actual payment in respect of a payment of a kind mentioned in paragraph (a).
Note:	The trustee of the AMIT concerned and/or the custodian may have to pay the Commissioner an amount in respect of the deemed payment (see Subdivision 12A‑C).
12A‑15  Deemed dividend, interest or royalty payments—requirement to give notice or make information available
	(1)	An entity must comply with subsection (3) if:
	(a)	the entity receives a payment that arises because of the operation of section 12A‑200 (deemed payments); and
	(b)	another entity (the subsequent recipient) is or becomes entitled:
	(i)	to receive from the entity; or
	(ii)	to have the entity credit to the subsequent recipient, or otherwise deal with on the subsequent recipient’s behalf or as the subsequent recipient directs;
		an amount attributable to the payment; and
	(c)	the entity would have been required to withhold an amount from the payment under subsection 12‑215(1), 12‑250(1) or 12‑285(1) if the subsequent recipient had been a foreign resident; and
	(d)	an amount is not required to be withheld from the payment because the subsequent recipient is not a foreign resident.
	(2)	The entity must:
	(a)	give to the subsequent recipient a written notice containing the details specified in subsection (3); or
	(b)	make those details available on a website in a way that the details are readily accessible to the subsequent recipient for not less than 5 continuous years.
	(3)	The notice must be given, or the details must be made available on a website, before or at the time when the amount is paid or credited to the subsequent recipient, or is dealt with on the subsequent recipient’s behalf or as the subsequent recipient directs, and:
	(a)	must specify the part of the payment referred to in paragraph (1)(a) from which an amount would have been so required to have been withheld; and
	(b)	must specify the income year of the *AMIT to which that part relates.
Failure to give notice or make information available: administrative penalty
	(4)	An entity that:
	(a)	is required to give a notice, or make details available on a website, under this section in relation to:
	(i)	a payment made to another entity; or
	(ii)	an amount paid or credited to, or dealt with on behalf of or as directed by, another entity; and
	(b)	fails to comply with this section;
is liable to pay to the Commissioner a penalty equal to the amount that would have been required to be withheld under this Subdivision (disregarding section 12‑300) in relation to amounts attributable to the payment or amount if the notice had been given or the details had been made available.
Note:	Division 298 in this Schedule contains machinery provisions for administrative penalties.
12A‑20  Meaning of AMIT DIR payment
	(1)	This section applies to a trust that is an *AMIT for an income year.
	(2)	A payment that the trustee of a trust makes in relation to an income year is an AMIT DIR payment in relation to that year if the payment is of any of the following *AMIT characters:
	(a)	the AMIT character mentioned in item 6 of the table in subsection 276‑150(2) of the Income Tax Assessment Act 1997 (dividend);
	(b)	the AMIT character mentioned in item 7 of that table (interest);
	(c)	the AMIT character mentioned in item 8 of that table (royalty).
Note:	The payment by the trustee may be an actual payment, or a deemed payment under section 12A‑200.
	(3)	However, the payment is not an AMIT DIR payment in relation to the income year if:
	(a)	the payment (the actual payment) is a *parallel actual payment in respect of another payment; and
	(b)	the other payment arises because of the operation of section 12A‑200; and
	(c)	the actual payment is made on or after the time the other payment arises; and
	(d)	the other payment is an *AMIT DIR payment.
Subdivision 12A‑B—Modifications of Subdivision 12‑H for AMITs
12A‑100  What this Subdivision is about
This Subdivision modifies the operation of this Part and Subdivision 840‑M of the Income Tax Assessment Act 1997 in respect of a *withholding MIT that is an *AMIT.
12A‑105  Deemed payments—no obligation to withhold under Subdivision 12‑H
	(1)	The trustee mentioned in subsection 12‑385(1) need not withhold an amount under that subsection from the payment mentioned in that subsection if the payment arises because of the operation of section 12A‑200 (deemed payments).
Note:	The trustee may have to pay the Commissioner an amount in respect of the deemed payment (see Subdivision 12A‑C).
	(2)	The *custodian mentioned in subsection 12‑390(1) need not withhold an amount under that subsection from the payment mentioned in that subsection if:
	(a)	the later payment arises because of the operation of section 12A‑200 (deemed payments); or
	(b)	the later payment is a *parallel actual payment in respect of a payment of a kind mentioned in paragraph (a).
Note:	The trustee of the AMIT concerned and/or the custodian may have to pay the Commissioner an amount in respect of the deemed payment (see Subdivision 12A‑C).
	(3)	The entity mentioned in subsection 12‑390(4) need not withhold an amount under that subsection from the payment mentioned in that subsection if:
	(a)	the payment arises because of the operation of section 12A‑200 (deemed payments); or
	(b)	the payment is a *parallel actual payment in respect of a payment of a kind mentioned in paragraph (a).
Note:	The entity may have to pay the Commissioner an amount in respect of the deemed payment (see Subdivision 12A‑C).
12A‑110  Deemed payments—requirement to give notice or make information available
		Disregard section 12A‑105 for the purposes of section 12‑395.
12A‑115  Meaning of fund payment—AMITs
	(1)	This section applies to a trust that is an *AMIT for an income year.
	(2)	The object of this section is to ensure that the total of the *fund payments that the trustee of the *AMIT makes in relation to the income year equals, as nearly as practicable, the amount mentioned in subsection (3).
	(3)	The amount is the total of the *taxable member components for the *AMIT for the income year of an *income AMIT character, disregarding taxable member components (the excluded components) of any of the following *AMIT characters:
	(a)	the AMIT character mentioned in item 2 of the table in subsection 276‑150(2) of the Income Tax Assessment Act 1997 (discount capital gain from a CGT asset that is not taxable Australian property);
	(b)	the AMIT character mentioned in item 4 of that table (non‑discount capital gain from a CGT asset that is not taxable Australian property);
	(c)	the AMIT character mentioned in item 6 of the table in subsection 276‑150(2) of the Income Tax Assessment Act 1997 (dividend);
	(d)	the AMIT character mentioned in item 7 of that table (interest);
	(e)	the AMIT character mentioned in item 8 of that table (royalty).
	(f)	the AMIT character mentioned in item 9 of that table (foreign source income);
	(g)	if a legislative instrument under subsection (4) specifies an AMIT character—that AMIT character.
	(4)	The Commissioner may, by legislative instrument, specify one or more *AMIT characters for the purposes of paragraph (3)(g).
	(5)	A payment (the actual or deemed payment) that the trustee of a trust makes in relation to an income year is a fund payment in relation to that year. The amount of the fund payment is worked out under the following method statement, and may be:
	(a)	the amount of the actual or deemed payment; or
	(b)	the amount of the actual or deemed payment, increased or reduced as a result of the method statement.
Note:	The payment by the trustee may be an actual payment, or a deemed payment under section 12A‑200.
Method statement
Step 1.	Reduce the actual or deemed payment by so much of it that is attributable to the excluded components.
Step 2.	Work out what it is reasonable to expect will be the amount mentioned in subsection (3).
	Do so on the basis that a *capital gain from *taxable Australian property of the trust that was or would be reduced under step 3 of the method statement in subsection 102‑5(1) of the Income Tax Assessment Act 1997 were double the amount it actually is.
Step 3.	The fund payment is so much of the step 2 amount as is reasonable having regard to:
	(a)	the object of this section; and
	(b)	the step 1 amount; and
	(c)	the amounts of any earlier fund payments made by the trustee in relation to the income year; and
	(d)	the expected amounts of any later fund payments the trustee expects to make in relation to the income year.
	(6)	The amount mentioned in subsection (3) and the expected amounts of any later *fund payments are to be worked out on the basis of the trustee’s knowledge when the payment is made.
	(7)	Subsection (6) does not apply if the payment is a payment arising because of the operation of section 12A‑200 (deemed payments).
	(8)	However, the payment is not a fund payment in relation to the income year if:
	(a)	the payment (the actual payment) is a *parallel actual payment in respect of another payment; and
	(b)	the other payment arises because of the operation of section 12A‑200; and
	(c)	the actual payment is made on or after the time the other payment arises; and
	(d)	the other payment is a *fund payment.
	(9)	An amount is also not a fund payment in relation to the income year unless it is paid:
	(a)	during the income year; or
	(b)	within 3 months after the end of the income year; or
	(c)	within a longer period (starting at the end of the period referred to in paragraph (b) and not exceeding 3 years) allowed by the Commissioner.
	(10)	The Commissioner may allow a longer period as mentioned in paragraph (9)(c) only if the Commissioner is of the opinion that:
	(a)	if the other payment arises at a time because of the operation of section 12A‑200 (deemed payments)—the *AMIT complied with subsection 276‑605(1) of the Income Tax Assessment Act 1997 in respect of the income year (requirement to give AMMA statements within 3 months); or
	(b)	otherwise—the trustee was unable to make the payment during the income year, or within 3 months after the end of the income year, because of circumstances beyond the influence or control of the trustee.
Subdivision 12A‑C—Deemed payments by AMITs etc.
12A‑200  Issue of AMMA statement etc. treated as deemed payment
	(1)	This section applies if:
	(a)	an entity (the first recipient) is or was a *member of a *withholding MIT in relation to an income year at any time in the income year; and
	(b)	the withholding MIT is an *AMIT for the income year; and
	(c)	the AMIT gives the first recipient an *AMMA statement for the income year.
	(2)	For the purposes of this Part, Subdivision 840‑M of the Income Tax Assessment Act 1997 and Division 11A of Part III of the Income Tax Assessment Act 1936:
	(a)	treat the trustee of the *AMIT as having made a payment (the first deemed payment) of an amount to the first recipient at the time the AMIT gave the first recipient the *AMMA statement; and
	(b)	treat the amount of the first deemed payment as being the total of the first recipient’s *taxable member components for the AMIT for the income year of an *income AMIT character (as reflected in the AMMA statement).
	(3)	Also, for the purposes of Division 11A of Part III of the Income Tax Assessment Act 1936, treat the first recipient as having derived the first deemed payment at the time the trustee of the *AMIT gave the first recipient the *AMMA statement.
	(4)	Subsection (5) applies if:
	(a)	the first recipient is a trust that is a *custodian; and
	(b)	another entity (the subsequent recipient):
	(i)	starts to have, at a time, a present entitlement to an amount that is reasonably attributable to all or part of the first deemed payment; or
	(ii)	would start to have, at a time, such a present entitlement if the first deemed payment were an actual payment of an amount.
	(5)	For the purposes of this Part, Subdivision 840‑M of the Income Tax Assessment Act 1997 and Division 11A of Part III of the Income Tax Assessment Act 1936:
	(a)	treat the first recipient as having made a payment (the subsequent deemed payment) of an amount to the subsequent recipient at that time; and
	(b)	treat the amount of the subsequent deemed payment as being the amount of the present entitlement mentioned in subparagraph (4)(b)(i) or (ii).
	(6)	If:
	(a)	an entity is a subsequent recipient mentioned in subsection (4), (including as a result of a previous operation of this subsection); and
	(b)	subsection (5) applies with the result that a payment is treated as having been made to the entity; and
	(c)	the entity is a trust that is a *custodian;
apply subsections (4) and (5) again as if the entity were the first recipient mentioned in that subsection.
Note:	This means that the entity is treated under subsection (4) as having made a payment to another entity if the other entity has (or would have) a present entitlement as mentioned in paragraph (3)(b).
12A‑205  Parallel actual payment in respect of deemed payment
		A payment is a parallel actual payment in respect of a payment (the deemed payment) that arises because of the operation of section 12A‑200 if:
	(a)	the payment and the deemed payment are both attributable to the same *member component for the *AMIT mentioned in that section; and
	(b)	the payment does not arise because of the operation of section 12A‑200.
12A‑210  AMIT payment to the Commissioner in respect of deemed payments to offshore entities etc.
	(1)	A trustee of a trust that is an *AMIT in relation to an income year must pay an amount to the Commissioner if:
	(a)	the trust is a *withholding MIT in relation to the income year; and
	(b)	the trustee makes a payment (the deemed payment) that arises because of the operation of section 12A‑200 (deemed payments); and
	(c)	if the deemed payment is a *fund payment in relation to that income year—the payment is made to an entity covered by section 12‑410; and
	(d)	if the deemed payment is an *AMIT DIR payment in relation to that income year—the payment is made to an entity that is not an *Australian resident.
Note 1:	Paragraph (c)—An entity may be covered by section 12‑410 if the entity has an address outside Australia or payment is authorised to be made to a place outside Australia.
Note 2:	Paragraph (c)—If the payment is made to a recipient not covered by section 12‑410, the trustee is required to give a notice to the recipient or publish information on a website setting out certain details about the payment: see section 12‑395.
	(2)	The amount that the trustee must pay is equal to the amount that the trustee would, if the assumptions in subsection (2A) were made, have had to withhold:
	(a)	if the deemed payment is a *fund payment in relation to that income year—under section 12‑385; or
	(b)	if the deemed payment is an *AMIT DIR payment in relation to that income year—under subsection 12‑215(1), 12‑250(1) or 12‑285(1).
	(3)	The assumptions are that the deemed payment:
	(a)	had not arisen because of the operation of section 12A‑200; and
	(b)	had instead been an actual payment.
12A‑215  Custodian payment to the Commissioner in respect of deemed payments to offshore entities etc.
	(1)	A *custodian must pay an amount to the Commissioner if:
	(a)	the custodian makes a payment (the subsequent deemed payment) that arises because of the operation of section 12A‑200 (deemed payments); and
	(b)	if the subsequent deemed payment is a *fund payment in relation to that income year:
	(i)	all or some of the subsequent deemed payment (the covered part) is reasonably attributable to the part of an earlier payment received by the custodian that was covered by a notice or information under section 12‑395; and
	(ii)	the subsequent deemed payment is made to an entity covered by section 12‑410; and
	(c)	if the subsequent deemed payment is an *AMIT DIR payment in relation to that income year:
	(i)	all or some of the subsequent deemed payment (the covered part) is reasonably attributable to the part of an earlier payment received by the custodian that was an AMIT DIR payment; and
	(ii)	the subsequent deemed payment is made to an entity that is not an *Australian resident.
Note 1:	Paragraph (b)—An entity may be covered by section 12‑410 if the entity has an address outside Australia or payment is authorised to be made to a place outside Australia.
Note 2:	Paragraph (b)—If the payment is made to a recipient not covered by section 12‑410, the trustee is required to give a notice to the recipient or publish information on a website setting out certain details about the payment: see section 12‑395.
	(2)	The amount that the *custodian must pay is the amount that the custodian would, if the assumptions in subsection (2A) were made, have had to withhold:
	(a)	if the subsequent deemed payment is a *fund payment in relation to that income year—under subsection 12‑390(1); or
	(b)	if the subsequent deemed payment is an *AMIT DIR payment in relation to that income year—under subsection 12‑215(1), 12‑250(1) or 12‑285(1).
	(3)	The assumptions are that the subsequent deemed payment:
	(a)	had not arisen because of the operation of section 12A‑200; and
	(b)	had instead been an actual payment.
	(4)	Subsection (5) applies if, on or within 30 days after the day on which the subsequent deemed payment arises:
	(a)	the *custodian has not received a *parallel actual payment in respect of the subsequent deemed payment; or
	(b)	if the custodian has received a parallel actual payment in respect of the subsequent deemed payment—the amount of that parallel actual payment falls short of the amount that the custodian must pay under subsection (2) (disregarding subsection (5)).
	(5)	Reduce the amount that the *custodian must pay:
	(a)	if paragraph (4)(a) applies—to nil; or
	(b)	if paragraph (4)(b) applies—to the amount of the *parallel actual payment.
Note:	The custodian must give the trustee of the AMIT notice of the reduction in accordance with section 12A‑220. If the custodian fails to do so, it will be liable to pay the Commissioner a penalty equal to the reduction (see subsection 12A‑220(5)).
12A‑220  Custodian must notify AMIT trustee of reduction under section 12A‑215
	(1)	If the amount the *custodian must pay under section 12A‑215 because of the subsequent deemed payment mentioned in that section is reduced under subsection 12A‑215(5), the custodian must give the trustee of the *AMIT mentioned in subsection (2) a notice in respect of the subsequent deemed payment in accordance with this section.
	(2)	The *AMIT is the AMIT that made the *fund payment (or *AMIT DIR payment) that, due to one or more operations of section 12A‑200, gave rise to the subsequent deemed payment.
	(3)	The notice must specify:
	(a)	the amount of the reduction mentioned in subsection 12A‑215(5); and
	(b)	the income year of the *AMIT to which the subsequent deemed payment relates.
	(4)	The *custodian must give the notice to the trustee of the *AMIT no later than 30 days after the day on which the subsequent deemed payment arises.
	(5)	If the *custodian fails to comply with subsection (1), it is liable to pay to the Commissioner a penalty equal to the amount of the reduction mentioned in subsection 12A‑215(5).
Note:	Division 298 in this Schedule contains machinery provisions for administrative penalties.
12A‑225  AMIT given notice under section 12A‑220 must pay Commissioner amount of reduction
	(1)	A trustee of a trust that is an *AMIT in relation to an income year must pay an amount to the Commissioner if:
	(a)	the amount that a *custodian had to pay under section 12A‑215 is reduced under subsection 12A‑215(5); and
	(b)	the custodian gives the trustee of the AMIT a notice in respect of the deemed payment in accordance with section 12A‑215.
 	(2)	The amount that the trustee must pay is equal to the amount of the reduction mentioned in subsection 12A‑215(5).
12A‑230  Entity payment to the Commissioner in respect of deemed payments to offshore entities etc.
	(1)	An entity must pay an amount to the Commissioner if:
	(a)	the entity is not a *managed investment trust or a *custodian; and
	(b)	the entity receives a payment (the deemed payment) that arises because of the operation of section 12A‑200 (deemed payments); and
	(c)	the payment or part of it (the covered part) was covered by:
	(i)	if the deemed payment is a *fund payment in relation to that income year—a notice or information under section 12‑395; or
	(ii)	if the deemed payment is an *AMIT DIR payment in relation to that income year—a notice or information under section 12A‑15; and
	(d)	a foreign resident (the recipient) is or becomes entitled:
	(i)	to receive from the entity; or
	(ii)	to have the entity credit to the recipient, or otherwise deal with on the recipient’s behalf or as the recipient directs;
		an amount reasonably attributable to the covered part.
Note:	If the recipient not a foreign resident, the entity is required to give a notice to the recipient or publish information on a website setting out certain details about the payment: see section 12‑395.
	(2)	The amount that the entity must pay is equal to the amount that the entity would have had to withhold under subsection 12‑390(4) if:
	(a)	the deemed payment had not arisen because of the operation of section 12A‑200; and
	(b)	had instead been an actual payment.
	(3)	Subsection (4) applies if, within 30 days after the day on which the deemed payment arises:
	(a)	the entity has not received a *parallel actual payment in respect of the deemed payment; or
	(b)	if the entity has received a parallel actual payment in respect of the deemed payment—the amount of that parallel actual payment falls short of the amount that the entity must pay under subsection (2) (disregarding subsection (4).
	(4)	Reduce the amount that the entity must pay:
	(a)	if paragraph (3)(a) applies—to nil; or
	(b)	if paragraph (3)(b) applies—to the amount of the *parallel actual payment.
7  Section 16‑1 in Schedule 1
Omit “Division 13 or 14”, substitute “Division 12A, 13 or 14”.
8  After subsection 16‑5 in Schedule 1
Insert:
16‑7  Treat entity obliged to pay under Subdivision 12A‑C as having withheld amount under Division 12
		For the purposes of this Division:
	(a)	if an entity must pay an amount to the Commissioner under Subdivision 12A‑C, treat the entity as being obliged to withhold the amount under Division 12; and
	(b)	if an entity has paid an amount to the Commissioner under Subdivision 12A‑C, treat the entity as having withheld the amount under Division 12.
9  Paragraph 16‑20(b) in Schedule 1
Omit “Division 13 or 14”, substitute “Division 12A, 13 or 14”.
10  Subsection 16‑25(2) in Schedule 1
Omit “Division 13 or 14”, substitute “Division 12A, 13 or 14”.
11  Paragraph 16‑25(4)(b) in Schedule 1
Omit “Division 13 or 14”, substitute “Division 12A, 13 or 14”.
12  Paragraph 16‑30(b) in Schedule 1
Omit “Division 13 or 14”, substitute “Division 12A, 13 or 14”.
13  After paragraph 16‑140(1)(a) in Schedule 1
Insert:
	(aaa)	Division 12A (about deemed payments by AMITs); or
14  Paragraph 16‑140(2)(b) in Schedule 1
Omit “Division 13 or 14”, substitute “Division 12A, 13 or 14”.
15  Paragraph 18‑32(1)(b) in Schedule 1
Repeal the paragraph, substitute:
	(b)	the entity has borne all or part of an *amount:
	(i)	withheld from the payment under Subdivision 12‑H; or
	(ii)	paid under Division 12A.
16  After subsection 18‑65(1) in Schedule 1
Insert:
	(1A)	For the purposes of this section, if an entity has paid an amount to the Commissioner purportedly under Subdivision 12A‑C (about deemed payments by AMITs), treat the entity as having withheld the amount purportedly under Division 12.
  
Schedule 4—Annual cost base adjustment for member’s unit or interest in AMIT
  
Income Tax Assessment Act 1997
1  Section 104‑5 (after table item relating to CGT event E9)
Insert:
E10 Annual cost base reduction exceeds cost base of interest in AMIT

See section 104‑107A	when reduction happens	cost base reduction exceeds cost base	no capital loss	
2  After subsection 104‑70(1)
Insert:
	(1A)	However, CGT event E4 does not happen if, as a result of the payment mentioned in subsection (1), CGT event E10 happens.
3  At the end of Subdivision 104‑E
Add:
104‑107A  AMIT—cost base reduction exceeds cost base: CGT event E10
	(1)	CGT event E10 happens if:
	(a)	you are a *member of an *AMIT in relation to an income year because you have a *CGT asset that is your unit or your interest in the trust; and
	(b)	the *cost base of that asset is reduced under subsection 104‑107B(2) at a time; and
	(c)	the asset’s *AMIT cost base net amount for the income year in which the reduction occurs exceeds the cost base of the asset.
	(2)	The time of the event is the time at which the reduction occurs under section 104‑107B.
	(3)	You make a capital gain equal to the excess mentioned in paragraph (1)(c).
Note 1:	If you make a capital gain, the cost base and reduced cost base of the CGT asset are reduced to nil (see paragraph 104‑107B(2)(a)).
Note 2:	You cannot make a capital loss.
Exceptions
	(4)	A *capital gain you make from *CGT event E10 is disregarded if you *acquired the *CGT asset that is the unit or interest before 20 September 1985.
104‑107B  Annual cost base adjustment for member’s unit or interest in AMIT
	(1)	This section applies if you are a *member of an *AMIT in relation to an income year because you have a *CGT asset that is a unit or your interest in the trust.
	(2)	If the *CGT asset’s *AMIT cost base net amount for the income year is the excess mentioned in paragraph 104‑107C(a):
	(a)	in a case where that AMIT cost base net amount exceeds the *cost base of the asset—reduce the cost base and *reduced cost base of the asset to nil; or
	(b)	otherwise—reduce the cost base and reduced cost base of the asset by that AMIT cost base net amount.
Note:	If that AMIT cost base net amount exceeds the cost base of the asset, CGT event E10 will happen (see section 104‑107).
	(3)	If the *CGT asset’s *AMIT cost base net amount for the income year is the shortfall mentioned in paragraph 104‑107C(b), increase the *cost base and *reduced cost base of the asset by that AMIT cost base net amount.
	(4)	The time of the reduction or increase is:
	(a)	unless paragraph (b) applies—just before the end of the income year; or
	(b)	if a *CGT event happens to the *CGT asset at a time when you hold it before the end of the income year—just before the time of that CGT event.
104‑107C  AMIT cost base net amount
		The *CGT asset’s AMIT cost base net amount for the income year is:
	(a)	if the CGT asset’s *AMIT cost base reduction amount for the income year exceeds the CGT asset’s *AMIT cost base increase amount for the income year—the amount of the excess; or
	(b)	if the CGT asset’s AMIT cost base reduction amount for the income year falls short of the CGT asset’s AMIT cost base increase amount for the income year—the amount of the shortfall.
104‑107D  AMIT cost base reduction amount
	(1)	The *CGT asset’s AMIT cost base reduction amount for the income year is the total of:
	(a)	money, and the *market value of any property, if:
	(i)	you start have a right to receive the money or property from the trustee of the *AMIT in the income year; and
	(ii)	that right is indefeasible (disregarding section 276‑55) or is reasonably likely not to be defeated; and
	(b)	all amounts of *tax offset that you have for the income year in respect of the *AMIT because of the operation of section 276‑80;
to the extent that the total is reasonably attributable to the *CGT asset.
	(2)	If:
	(a)	*CGT event A1, C2, E1, E2, E6 or E7 happens to the *CGT asset before the end of the income year; and
	(b)	as a result, the time of the reduction or increase mentioned in subsection 104‑107B(4) is just before the time of that CGT event;
do not include in the CGT asset’s AMIT cost base reduction amount for the income year any *capital proceeds from that CGT event.
104‑107E  AMIT cost base increase amount
	(1)	The *CGT asset’s AMIT cost base increase amount for the income year is the total of the 2 amounts set out in the following subsections.
	(2)	The first amount is the total of all of the following amounts included in your assessable income for the income year in respect of the *AMIT, to the extent that they are reasonably attributable to the *CGT asset:
	(a)	amounts so included because of the operation of section 276‑80;
	(b)	amounts so included otherwise than because of the operation of section 276‑80 (as reduced in accordance with section 276‑90‑).
	(3)	For the purposes of working out amounts under subsection (2), assume that you are an Australian resident.
	(4)	For the purposes of subsection (5), assume that *CGT event E4 happens because the trustee of the *AMIT makes a payment to you in respect of your unit or your interest in the *AMIT.
	(5)	The second amount is the amount by which the non‑assessable part mentioned in section 104‑70 is reduced by the operation of section 104‑71, to the extent that the amount of the reduction is reasonably attributable to the *CGT asset.
104‑107F  Receipt of money etc. increasing AMIT cost base reduction amount not to be treated as income
	(1)	Subsections (2) and (3) apply if:
	(a)	you start to have a right to receive any money or the *market value of any property from the trustee of an *AMIT in an income year; and
	(b)	the right is indefeasible (disregarding section 276‑55) or is reasonably likely not to be defeated; and
	(c)	the right is not remuneration or consideration for you providing finance, services, goods or property to the trustee of the AMIT or to another person; and
	(d)	the right is reasonably attributable to a *CGT asset that is a *membership interest in the AMIT; and
	(e)	the CGT asset is not *trading stock nor a *Division 230 financial arrangement; and
	(f)	as a result of you starting to have the right, the CGT asset’s *AMIT cost base reduction amount for the income year is increased because of the operation of section 104‑107D.
	(2)	These provisions do not apply to you starting to have the right:
	(a)	sections 6‑5 (about *ordinary income), 8‑1 (about amounts you can deduct), 15‑15 and 25‑40 (about profit‑making undertakings or plans);
	(b)	sections 25A and 52 of the Income Tax Assessment Act 1936 (about profit‑making undertakings or schemes).
	(3)	Section 6‑10 (about *statutory income) does not apply to you starting to have the right except so far as that section applies in relation to section 102‑5 (about net capital gains).
104‑107G  Receipt of money etc. increasing or decreasing cost of AMIT membership revenue asset
	(1)	Subsections (2) and (3) apply if:
	(a)	you start to have a right to receive any money or the *market value of any property from the trustee of an *AMIT in an income year; and
	(b)	the right is indefeasible (disregarding section 276‑55) or is reasonably likely not to be defeated; and
	(c)	the right is not remuneration or consideration for you providing finance, services, goods or property to the trustee of the AMIT or to another person; and
	(d)	the right is reasonably attributable to a *CGT asset that is a *membership interest in the AMIT; and
	(e)	the CGT asset is a *revenue asset; and
	(f)	the CGT asset is not *trading stock nor a *Division 230 financial arrangement; and
	(g)	as a result of you starting to have the right:
	(i)	the CGT asset’s *AMIT cost base reduction amount for the income year is increased by an amount (the cost reduction amount) because of the operation of section 104‑107D; or
	(ii)	the CGT asset’s *AMIT cost base increase amount for the income year is increased by an amount (the cost increase amount) because of the operation of section 104‑107E.
	(2)	For the purposes mentioned in subsection (3), make these adjustments to the cost of the asset:
	(a)	if subparagraph (1)(g)(i) applies—treat the cost of the asset as being reduced by the cost reduction amount at the time the *CGT event happens (but not below zero); or
	(b)	if subparagraph (1)(g)(ii) applies—treat the cost of the asset as being increased by the cost increase amount at the time the CGT event happens.
	(3)	Make the adjustments in subsection (2) for the purposes of working out an amount included in your assessable income as a result of the circumstances giving rise to the *CGT event (or working out an amount treated as a deduction as a result of those circumstances) under any of these provisions:
	(a)	sections 6‑5 (about *ordinary income), 8‑1 (about amounts you can deduct), 15‑15 and 25‑40 (about profit‑making undertakings or plans);
	(b)	sections 25A and 52 of the Income Tax Assessment Act 1936 (about profit‑making undertakings or schemes).
	(4)	Subsection (5) applies if:
	(a)	subparagraph (1)(g)(i) applies; and
	(b)	the cost reduction amount exceeds the cost of the *CGT asset just before the time the *CGT event happens.
	(5)	Include in your assessable income for the income year in which that time occurs:
	(a)	if the cost of the *CGT asset was zero just before that time—the cost reduction amount; or
	(b)	otherwise—the excess mentioned in paragraph (4)(b).
	(6)	Subsection (5) applies despite subsection 104‑107F(3).
	(7)	For the purposes of section 118‑20, treat this section as being outside of this Part.
Note:	Section 118‑20 deals with reducing capital gains if an amount is otherwise assessable.
4  Section 977‑5
After “E4”, insert “, CGT event E10”.
Schedule 5—20% tracing rule
  
Income Tax Assessment Act 1936
1  Section 102MD
Repeal the section, substitute:
102MD  Exempt institution that is eligible for a refund not treated as exempt entity
		For the purposes of this Division, treat an exempt institution that is eligible for a refund (within the meaning of the Income Tax Assessment Act 1997) as not being an exempt entity.
Income Tax Assessment Act 1997
2  Section 295‑173
Repeal the section, substitute:
295‑173  Exception—trustee contributions
		Item 1 of the table in section 295‑160 does not include in assessable income:
	(a)	a contribution made by an entity that was, when the contribution was made, the trustee of a *complying superannuation fund, a *complying approved deposit fund or a *pooled superannuation trust; or
	(b)	a contribution made out of the *complying superannuation/FHSA assets, or out of the *segregated exempt assets, of a *life insurance company.
Schedule 6—Consequential amendments
  
Income Tax Assessment Act 1936
1  Subsection 6(1) (after paragraph (h) of the definition of assessment)
Insert:
	(ha)	the ascertainment of the amount of tax payable (or that no tax is payable) under the following:
	(i)	subsections 276‑95(2) and 276‑105(2) of the Income Tax Assessment Act 1997 (AMIT trustee taxed amounts atttributed to foreign resident members);
	(ii)	the amount of tax payable under subsection 276‑350(3) of that Act (AMIT trustee taxed on trust component deficit for offset characters);
	(iii)	paragraph 276‑500(4)(a), (b) or (c) of that Act (AMIT trustee taxed on shortfall in single determined member component (income, exempt, NANE)); or
	(iv)	subsection 276‑505(2) of that Act (AMIT trustee taxed on excess in single determined member component (offset));
	(v)	subsection 276‑515(2) of that Act (AMIT trustee taxed on amounts of determined trust component that cannot be reflected in member components);
	(vi)	subsection 276‑520(2) of that Act (AMIT trustee taxed on amounts of under of income character not properly carried forward);
	(vii)	subsection 276‑525(2) of that Act (AMIT trustee taxed on amounts of over of offset character not properly carried forward);
	(viii)	the amount of tax payable under subsection 276‑670(2) of that Act (AMIT trustee taxed on amount of non‑arm’s length income of AMIT); or
2  After section 95AAC
Insert:
95AAD  Division does not apply in relation to AMIT
		This Division does not apply in relation to a trust estate that is an AMIT (within the meaning of the Income Tax Assessment Act 1997).
3  Division 6B of Part III
Repeal the Division.
4  Subsection 102T(16)
Omit “Subdivision 840‑M”, substitute “Division 275 or Subdivision 840‑M”.
Schedule 7—Widely‑held requirements
  
Taxation Administration Act 1953
1  After paragraph 12‑402(3)(a) in Schedule 1
Insert:
	(aa)	a *foreign life insurance company that is regulated under a *foreign law;
2  Paragraph 12‑402(3)(i) in Schedule 1
Omit “regulations.”, substitute “regulations;”.
3  At the end of subsection 12‑402(3)(a) in Schedule 1
Add:
	(j)	an entity, all the *membership interests in which are beneficially owned by any of the following:
	(i)	entities mentioned in the preceding paragraphs of this subsection;
	(ii)	*wholly‑owned subsidiaries of such entities.
Schedule 8—Application
  
1  Application provision
(1)	The amendments made by Schedules 1, 2, 3, 4, 5, 6 and 9 apply to assessments for income years starting on or after 1 July 2015.
(2)	The amendments made by Schedule 7 apply to assessments for income years starting on or after 1 July 2014.
Income Tax (Transitional Provisions) Act 1997
2  At the end of Part 3‑25
Add:
Division 276—Attribution managed investment trusts
Table of Subdivisions
276‑T	Becoming an AMIT
Subdivision 276‑L—Modification for non‑arm’s length income
Table of sections
276‑670T	  Trustee taxed on amount of non‑arm’s length income of AMIT—not applicable for pre‑introduction scheme where amount derived before 1 July 2017
276‑670T  Trustee taxed on amount of non‑arm’s length income of AMIT—not applicable for pre‑introduction scheme where amount derived before 1 July 2017
	(1)	This section applies if:
	(a)	the requirements set out in paragraphs 276‑670(1)(a), (b) and (c) of the Income Tax Assessment Act 1997 are satisfied in respect of an amount of *non‑arm’s length income for an *AMIT in relation to an income year; and
	(b)	the AMIT became a party to the scheme mentioned in paragraph 276‑670(5)(a) of that Act before the day on which the Bill that became the Tax Laws Amendment (New Tax System for Managed Investment Trusts) Act 2015 was introduced into the House of Representatives; and
	(c)	the amount was derived before 1 July 2017.
	(2)	Subsections 276‑670(2) and (3) of that Act do not apply in respect of the amount.
Subdivision 276‑T—Becoming an AMIT
Table of sections
276‑800	Application of Subdivision to former AMIT
276‑805	Accounting for unders and overs for base years before becoming an AMIT
276‑800  Application of Subdivision to former AMIT
	(1)	This Subdivision applies if:
	(a)	a trust becomes an *AMIT for the starting income year; and
	(b)	the trust existed in an earlier income year (the base year); and
	(c)	the trust is an AMIT for an income year (the discovery year) that is the starting income year or a later income year.
276‑805  Accounting for unders and overs for base years before becoming an AMIT
	(1)	This section applies if the trust has an under or over of an AMIT character in the discovery year relating to the base year.
	(2)	For the purposes of subsection (1):
	(a)	assume that the trust is an AMIT for the base year and every later year prior to the starting income year; and
	(b)	if, at a time, the trust sent its members distribution statements for an income year that is prior to the starting income year—assume that the trust sent those members AMMA statements for that income year at that time.
	(3)	For the purposes of Division 276 of the Income Tax Assessment Act 1997, treat the under or over mentioned in subsection (1) as an under or over of the AMIT, in the discovery year relating to the base year, of the AMIT character mentioned in that subsection.
	(4)	However, disregard that under or over for the purposes of Subdivision 276‑H of that Act (uplifts for unders and overs).
	(5)	If:
	(a)	had the under or over mentioned in subsection (1) been discovered before the starting income year, this Act would have operated to produce a particular effect for the base year in relation to the amount or amounts reflected in the under or over; and
	(b)	subsection (3) accounts for that effect;
treat this Act as not operating to produce that effect for the base year.
	(6)	In this section:
starting income year means the 2015‑16 income year.
Schedule 9—Definitions
  
Income Tax Assessment Act 1997
1  Subsection 995‑1(1)
Insert:
AMIT: see attribution managed investment trust.
AMIT character has the meaning given by section 276‑150.
AMIT cost base increase amount has the meaning given by section 104‑107E.
AMIT cost base net amount has the meaning given by section 104‑107C.
AMIT cost base reduction amount has the meaning given by section 104‑107D.
AMIT DIR payment has the meaning given by section 12A‑20 of Schedule 1 to the Taxation Administration Act 1953.
AMIT member annual statement (or AMMA statement) has the meaning given by section 276‑610.
attribution managed investment trust (or AMIT) has the meaning given by section 276‑10.
carry‑forward trust component deficit, of a particular *AMIT character, has the meaning given by section 276‑345.
corporate tax gross‑up rate means the following amount:

determined member component has the meaning given by section 276‑210.
determined trust component has the meaning given by section 276‑270.
exempt AMIT character has the meaning given by subsection 276‑150(3).
member component has the meaning given by section 276‑215.
2  Subsection 995‑1(1) (at the end of the definition of fixed trust)
Add:
Note:	AMITs are treated in the same way as fixed trusts (see section 276‑55).
3  Subsection 995‑1(1) (definition of fund payment)
Omit “12‑405”, substitute “sections 12‑405 and 12A‑115”.
4  Subsection 995‑1(1)
Insert:
income AMIT character has the meaning given by subsection 276‑150(2).
NANE AMIT character has the meaning given by subsection 276‑150(4).
net variance threshold has the meaning given by section 276‑420.
5  Subsection 995‑1(1) (definition of non‑arm’s length income)
Repeal the definition, substitute:
non‑arm’s length income has the meaning given by sections 295‑550 and 276‑670.
6  Subsection 995‑1(1)
Insert:
offset AMIT character has the meaning given by subsection 276‑150(6).
over, of a particular *AMIT character, has the meaning given by section 276‑355.
overall base year excess has the meaning given by section 276‑420.
overall base year shortfall has the meaning given by section 276‑420.
parallel actual payment has the meaning given by section 12A‑205 of Schedule 1 to the Taxation Administration Act 1953.
taxable member component has the meaning given by section 276‑205.
trust component, of a particular *AMIT character, has the meaning given by sections 276‑280, 276‑345 and 276‑350.
trust component deficit, of a particular *AMIT character, has the meaning given by sections 276‑345 and 276‑350.
under, of a particular *AMIT character, has the meaning given by section 276‑355.