Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) This section sets out the circumstances in which * NRAS rent:
(a) flows indirectly to an entity (subsection (2), (3) or (4)); or
(b) flows indirectly through an entity (subsection (5)).
(2) * NRAS rent flows indirectly to a partner in a partnership in an income year if, and only if:
(a) during that income year, the NRAS rent is * derived by the partnership, or * flows indirectly to the partnership as a beneficiary because of a previous application of subsection (3); and
(b) the partner has an individual interest:
(i) in the partnership's * net income for that income year that is covered by paragraph 92(1)(a) or (b) of the Income Tax Assessment Act 1936 ; or
(ii) in a * partnership loss of the partnership for that income year that is covered by paragraph 92(2)(a) or (b) of that Act;
(whether or not that individual interest becomes assessable income in the hands of the partner); and
(c) the partner's * share of the NRAS rent under section 380 - 30 is a positive amount (whether or not the partner actually receives any of that share).
Beneficiaries
(3) * NRAS rent flows indirectly to a beneficiary of a trust in an income year if, and only if:
(a) during that income year, the NRAS rent is * derived by the trustee of the trust, or * flows indirectly to the trustee as a partner or beneficiary because of a previous application of subsection (2) or this subsection; and
(b) the beneficiary has this amount for that income year (the share amount ):
(i) a share of the trust's * net income for that income year that is covered by paragraph 97(1)(a) of the Income Tax Assessment Act 1936 ; or
(ii) an individual interest in the trust's net income for that income year that is covered by section 98A or 100 of that Act;
(whether or not the share amount becomes assessable income in the hands of the beneficiary); and
(c) the beneficiary's * share of the NRAS rent under section 380 - 30 is a positive amount (whether or not the beneficiary actually receives any of that share).
(4) * NRAS rent flows indirectly to the trustee of a trust in an income year if, and only if:
(a) during that income year, the NRAS rent is * derived by the trustee, or * flows indirectly to the trustee as a partner or beneficiary because of a previous application of subsection (2) or (3); and
(b) the trustee is liable or, but for another provision in this Act, would be liable, to be assessed in respect of an amount (the share amount ) that is:
(i) a share of the trust's * net income for that income year under section 98 of the Income Tax Assessment Act 1936 ; or
(ii) all or a part of the trust's net income for that income year under section 99 or 99A of that Act;
(whether or not the share amount becomes assessable income in the hands of the trustee); and
(c) the trustee's * share of the NRAS rent under section 380 - 30 is a positive amount (whether or not the trustee actually receives any of that share).
Note: A trustee to whom NRAS rent flows indirectly under this subsection is entitled to a tax offset under section 380 - 15 and the NRAS rent does not flow indirectly through the trustee to another entity.
(5) * NRAS rent flows indirectly through an entity (the first entity ) to another entity if, and only if:
(a) the other entity is the focal entity in an item of the table in section 380 - 30 in relation to the NRAS rent; and
(b) that focal entity's * share of the NRAS rent is based on the first entity's share of the NRAS rent as an intermediary entity in that or another item of the table.