4.12.1.10 Determining a designated private trust or private company from 01/01/2002

Date of effect

This topic has effect to private trusts and private companies from 1 January 2002.

This topic

This topic contains information on the following:

• summary
• determining a designated private trust, and
• determining a designated private company.

Summary

For the assets (1.1.A.290) and income of a private trust or private company to be attributed to an individual the trust or company must be:

• a designated trust or company, AND
• a controlled trust or company in relation to the individual, AND
• the individual must be an attributable stakeholder of the trust or company.

Determining a designated private trust

A trust is a designated private trust UNLESS:

• ALL of the following conditions are satisfied
  • the trust is a fixed trust
  • the units in the trust are held by 50 or more persons
  • the trust was not created or operated under a scheme that was entered into to gain a social security or Veterans' Affairs advantage, OR
• the trust is a complying superannuation fund, OR
• the trust is an excluded trust.

Once the assessor has determined that the trust is a designated private trust then the issue of who controls the assets and income of the trust and the percentage of control to be attributed to the individual/s can be decided.

Determining a designated private company before 1 July 2019

A company is a designated private company if:

• the company satisfies at least 2 of the following conditions in relation to the financial year ending immediately before the assessment period
  • the consolidated gross operating revenue for the financial year for the company and its subsidiaries is less than $25 million
  • the value of the consolidated gross assets at the end of the financial year of the company and its subsidiaries is less than $12.5 million
  • the company and its subsidiaries have fewer than 50 employees at the end of the financial year, OR
• the company is a new company and came into existence after the end of the last financial year, OR
• the company is a declared private company, AND
• the company is not an excluded company.

Once the assessor has determined that the company is a designated private company then the issue of who controls the assets and income of the company and the percentage of control to be attributed to the individual/s can be decided.

Determining a designated private company after 1 July 2019

A company is a designated private company if:

• the company satisfies at least 2 of the following conditions in relation to the financial year ending immediately before the assessment period
  • the consolidated gross operating revenue for the financial year for the company and its subsidiaries is less than $50 million
  • the value of the consolidated gross assets at the end of the financial year of the company and its subsidiaries is less than $25 million
  • the company and its subsidiaries have fewer than 100 employees at the end of the financial year, OR
• the company is a new company and came into existence after the end of the last financial year, OR
• the company is a declared private company, AND
• the company is not an excluded company.

Once the assessor has determined that the company is a designated private company then the issue of who controls the assets and income of the company and the percentage of control to be attributed to the individual/s can be decided.