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Division 6C property funds: Land in the context of infrastructure

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Published on 01 Aug 16 by "THE TAX SPECIALIST" JOURNAL ARTICLE

Division 6C of Part III of the Income Tax Assessment Act 1936 (Cth) operates to tax a “public trading trust” in the same way as a company, and its unitholders as if they are shareholders. A public unit trust that carries on a business that consists wholly of an eligible investment business does not carry on a “trading business”. This paper considers the first limb of the definition of “eligible investment business”, that is “investing in land for the purpose of, or primarily for the purpose, of deriving rent” and associated provisions. The paper is principally concerned with the question “what is an investment in land” in the context of ensuring that a public unit trust avoids becoming a “public trading trust”. The key issues are what is an “investment in land”, what is “rent”, and when is an investment in land “for the purpose, or primarily for the purpose” of deriving rent.

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Christopher Peadon FTI
Chris Peadon, FTI, is a Barrister at New Chambers specialising in tax. - Current at 20 June 2025
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