Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) An instrument that gives rise to an interest in a trust is a debt - like trust instrument in relation to the trust if:
(a) the amount of any distribution relating to the interest is fixed, at the time the interest is created, by reference to the amount subscribed for the interest; and
(b) any distribution relating to the interest is made solely at the discretion of the trustee of the trust; and
(c) rights to distributions of capital or profits arising from all interests in the trust that are in the same * class as the interest, rank above all such rights arising from other interests in the trust (other than those covered under subsection (2)) if:
(i) the trust ceases to exist; or
(ii) where the trust is a * managed investment scheme--the scheme is under administration or is being wound up; and
(d) in a case where, in relation to a particular period, the trustee of the trust does not make a distribution relating to the interest--making a distribution of any of the following kinds, in relation to that period, is prohibited by the constituent documents of the trust:
(i) a distribution relating to any membership interest in the trust;
(ii) a distribution relating to a membership interest in another entity, if that interest is stapled together with a membership interest in the trust.
(2) This subsection covers an interest in the trust that:
(a) is not a * membership interest in the trust; or
(b) satisfies the requirements in paragraphs (1)(a) and (b).