{"id":"F2025L00233","name":"Veterans' Entitlements (Attribution of Income) Principles 2025","slug":"veterans-entitlements-attribution-of-income-principles-2025","collection":"legislative_instrument","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":null,"makingDate":null,"administeringDepartment":null,"currentVersion":{"id":106051,"registerId":"commonwealth-F2025L00233-current","compilationNumber":null,"startDate":"2026-04-03","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"Part 1","sectionType":"part","heading":"Preliminary","content":"# Part 1 Preliminary\n\n### 1 Name\n\nThis instrument is the Veterans’ Entitlements (Attribution of Income) Principles 2025.\n\n### 2 Commencement\n\nThis instrument commences on the day after the day it is registered.\n\n### 3 Authority\n\nThis instrument is made under section 52ZZZQ of the Veterans’ Entitlements Act 1986.\n\n### 3A Repeal\n\nSchedule 4 to the Veterans’ Affairs (Legislative Instrument Re-making Exercise) Instrument 2014 is repealed.\n\n### 4 Definitions\n\n> Note: A number of expressions used in this instrument are defined in the Act, including the following:\n\n    (a) attributable stakeholder – of a company or trust (see section 52ZZJ);\n    (b) Commission (see section 5Q);\n    (c) company (see section 52ZO);\n    (d) member of a couple (see section 5E);\n    (e) partner (see section 5E);\n    (f) trust (see section 52ZO of the Act).\n  In this instrument, unless the contrary intention appears:\n\n> Act means the Veterans’ Entitlements Act 1986.\n\n> attributable income, in relation to an individual who is an attributable stakeholder of a company or trust, means income that the individual is taken to receive during an attribution period of the company or trust.\n\n> distribution, in relation to a trust, includes an amount credited by a trust to a beneficiary of the trust.\n\n### 4A Purpose\n\n  This instrument sets out decision-making principles with which the Commission must comply in making the following determinations:\n\n(a) a determination under subsection 52ZZK(2) of the Act that, for the purposes of the application of subsection 52ZZK(1) of the Act to a specified individual and a specified company or trust, a specified amount is excluded income;\n\n(b) a determination under section 52ZZL of the Act that the ordinary income of an individual does not include the amount or value of a distribution, or a part of the amount or value of a distribution, to the individual by a company or trust;\n\n(c) a determination under section 52ZZP(3) of the Act that a specified period is a derivation period of a company or trust for the purposes of the application of Subdivision G of Division 11A of Part IIIB of the Act to a specified individual and to a specified company or trust;\n\n(d) a determination under section 52ZZQ(1) of the Act that a specified period is an attribution period for the purposes of the application of Division 11A of Part IIIB of the Act to a specified individual and to a specified company or trust.\n\n  \n\n# Part 2 Determination about excluded income (Act, s 52ZZK)\n\n## Division 2.1 No double counting—both members of couple are attributable stakeholders of company or trust\n\n### 5 Application of Division 2.1\n\n  This Division applies if, in respect of an individual, the following circumstances exist:\n\n(a) the individual is a member of a couple;\n\n(b) the individual and the individual’s partner are attributable stakeholders of a company or trust;\n\n(c) during a derivation period of the company or trust, the individual:\n\n(i) may, or may not, receive a distribution from the company or trust; but\n\n(ii) is taken to receive an amount of attributable income during the attribution period that relates to the derivation period;\n\n(d) during the derivation period mentioned in paragraph (c), the individual’s partner:\n\n(i) receives a distribution from the company or trust; and\n\n(ii) is taken to receive an amount of attributable income during the attribution period that relates to the derivation period.\n\n### 6 Sum of distributions is the same as sum of attributable income\n\n  (1) This section applies if:\n\n(a) the sum of the distributions mentioned in subparagraphs 5(c)(i) (if any) and 5(d)(i) is the same as the sum of the attributable income mentioned in subparagraphs 5(c)(ii) and 5(d)(ii); but\n\n(b) the amount of the distribution mentioned in subparagraph 5(d)(i) is greater than the amount of attributable income mentioned in subparagraph 5 (d)(ii).\n\n  (2) The Commission must consider determining that the difference between the amounts referred to in paragraph (1)(b) is excluded income in relation to the attributable income of the individual mentioned in paragraph 5(c).\n\n### 7 Sum of distributions is less than sum of attributable income\n\n(1) This section applies if:\n\n(a) the sum of the distributions mentioned in subparagraphs 5 (c)(i) (if any) and 5(d)(i) is less than the sum of the attributable income mentioned in subparagraphs 5(c)(ii) and 5(d)(ii); but\n\n(b) the amount of the distribution mentioned in subparagraph 5(d)(i) is greater than the amount of attributable income mentioned in subparagraph 5(d)(ii).\n\n(2) The Commission must consider determining that the difference between the amounts referred to in paragraph (1)(b) is excluded income in relation to the attributable income of the individual mentioned in paragraph 5(c).\n\n### 8 Sum of distributions is greater than sum of attributable income\n\n(1) This section applies if:\n\n(a) the sum of the distributions mentioned in subparagraphs 5(c)(i) (if any) and 5(d)(i) is greater than the sum of the attributable income mentioned in subparagraphs 5(c)(ii) and 5(d)(ii); but\n\n(b) the amount of the distribution mentioned in subparagraph 5(c)(i) (if any) is less than the amount of attributable income mentioned in subparagraph 5(c)(ii).\n\n(2) The Commission must consider determining that the difference between the amounts referred to in paragraph (1)(b) is excluded income in relation to the attributable income of the individual mentioned in paragraph 5(c).\n\n## Division 2.2 No double counting—one member of couple is not attributable stakeholder\n\n### 9 Distribution made to partner who is not attributable stakeholder\n\n(1) This section applies if, in respect of an individual, the following circumstances exist:\n\n(a) the individual is a member of a couple;\n\n(b) the individual is an attributable stakeholder of a company or trust, but the individual’s partner is not an attributable stakeholder of the company or trust;\n\n(c) during a derivation period of the company or trust, the individual:\n\n(i) may, or may not, receive a distribution from the company or trust; but\n\n(ii) is taken to receive an amount of attributable income during the attribution period that relates to the derivation period;\n\n(d) during the derivation period mentioned in paragraph (c), the individual’s partner receives a distribution from the company or trust.\n\n(2) The Commission must consider determining that an amount equal to the amount of the distribution received by the partner is excluded income in relation to the attributable stakeholder.\n\n## Division 2.3 Investor makes genuine transfer and receives distribution or credit\n\n### 10 Application of Division 2.3\n\nThis Division applies if:\n\n(a) an individual (the investor) makes a genuine transfer of capital to a company or trust of which the investor is not an attributable stakeholder; and\n\n(b) during a derivation period of the company or trust, the investor receives a distribution from the company or trust.\n\n### 11 Genuine transfer of capital\n\nFor section 10, a transfer of capital is a genuine transfer of capital if:\n\n(a) the investor receives, as consideration for the transfer, shares in the company, or units in the trust, of a value that is equivalent to the value of the capital transferred; and\n\n(b) the investor has a legal or equitable right to a share of the capital of the company or trust; and\n\n(c) the investor has a legal or equitable right to receive dividends or distributions in accordance with the constituent documents of the company or the terms of the trust; and\n\n(d) the investor is over 18 years of age.\n\n### 12 Excluded income\n\n(1) This section applies if:\n\n(a) an individual who is an attributable stakeholder of a company or trust is taken to receive attributable income in accordance with subsection 52ZZK(1) of the Act; and\n\n(b) the attributable income of the individual is taken to include additional ordinary income in the circumstances mentioned in section 10.\n\n(2) The Commission must consider determining that the amount of additional ordinary income worked out in accordance with subsection (3) is excluded income in relation to the attributable stakeholder.\n\n(3) The amount of excluded income is worked out by multiplying the amount of the distribution mentioned in paragraph 10(b) by the income attribution percentage of the attributable stakeholder.\n\n  \n\n# Part 3 Determination about excluded income (Act, s 52ZZL)\n\n## Division 3.1 No double counting of attributed income—general\n\n### 13 No double counting of attributed income—general\n\n(1) For paragraphs 52ZZL(1)(d) and (e) and (2)(d) and (e) of the Act, the Commission must have regard to the ordinary income of the individual received during the relevant attribution period and consider if the individual is an attributable stakeholder of:\n\n(a) more than 1 controlled private company; or\n\n(b) more than 1 controlled private trust; or\n\n(c) at least 1 controlled private company and 1 controlled private trust.\n\n(2) For paragraphs 52ZZL(1)(d) and (e) and (2)(d) and (e) of the Act, the Commission must also consider if a company or trust mentioned in subsection (1) has derived an amount, directly or indirectly, by way of dividend or other distribution from another controlled private company or controlled private trust.\n\n### 14 No double counting if ordinary income significantly diminished\n\n(1) This section applies if:\n\n(a) a company or trust makes a distribution to an individual who is an attributable stakeholder of the company or trust; and\n\n(b) the individual would, but for this section, be taken to receive an amount of ordinary income over a period of 12 months in accordance with section 46A of the Act; and\n\n(c) the ordinary income of the individual derived from the company or trust during an attribution period has ceased, or is significantly diminished, because the company or trust:\n\n(i) has been wound-up or otherwise ceased to exist; or\n\n(ii) has been subject to circumstances adversely affecting its profitability.\n\n(2) For paragraphs 52ZZL(1)(d) and (e) and (2)(d) and (e) of the Act, the Commission must consider:\n\n(a) whether, in all the circumstances, the application of section 46A of the Act would be unfair or unreasonable in relation to the individual; and\n\n(b) if section 46A applies unfairly or unreasonably in relation to the individual, determining that the ordinary income of the individual does not include the whole or part of the amount or value distributed to the individual.\n\n## Division 3.2 Distributions by companies\n\n### 15 No double counting of attributed income—distribution by company to all attributable stakeholders\n\n(1) This section applies if:\n\n(a) during a particular derivation period of a company, an individual receives a distribution of capital from the company (the distribution); and\n\n(b) the individual is an attributable stakeholder of the company during an attribution period that corresponds with the derivation period of the company; and\n\n(c) the distribution made to the attributable stakeholder is part of a distribution to all attributable stakeholders of the company (the total distribution); and\n\n(d) the proportion that the distribution to each attributable stakeholder bears to the total distribution, expressed as a percentage, is the same as each attributable stakeholder’s asset attribution percentage in relation to the company.\n\n(2) For paragraph 52ZZL(1)(d) of the Act, the Commission must consider determining that the ordinary income of the individual received during the attribution period does not include the distribution if, but for this section, the amount or value of the distribution would be included in the ordinary income of the individual for that period.\n\n(3) For paragraph 52ZZL(1)(e) of the Act, the Commission must consider determining that the ordinary income of the individual received during the attribution period does not include any part of the amount or value of the distribution if, but for this section, any part of the amount or value of the distribution would be included in the ordinary income of the individual for that period.\n\n### 16 No double counting of attributed income—other distributions by a company\n\n(1) This section applies if:\n\n(a) during a particular derivation period of a company, an individual receives a distribution of capital or profits from the company (the distribution); and\n\n(b) the individual is an attributable stakeholder of the company during an attribution period that corresponds with the derivation period of the company; and\n\n(c) the distribution is made in circumstances other than those mentioned in section 14 and paragraphs 15(1)(c) and (d); and\n\n(d) the individual is taken to receive additional ordinary income during that attribution period in accordance with subsection 52ZZK(1) of the Act.\n\n(2) For paragraph 52ZZL(1)(d) of the Act, if the amount of the distribution is less than, or equal to, the additional ordinary income that the individual is taken to receive in accordance with subsection 52ZZK(1) of the Act during the attribution period, the Commission must consider determining that the ordinary income of the individual received during that period does not include the amount of that distribution.\n\n(3) For paragraph 52ZZL(1)(e) of the Act, if the amount of the distribution exceeds the additional ordinary income that the individual is taken to receive in accordance with subsection 52ZZK(1) of the Act during the attribution period, the Commission must consider determining that the ordinary income of the individual received during that period does not include so much of the amount of the distribution that equals the additional ordinary income that the individual is taken to receive in accordance with subsection 52ZZK(1) of the Act.\n\n## Division 3.3 Distributions by trusts\n\n### 17 No double counting of attributed income—distribution by trust to all attributable stakeholders\n\n(1) This section applies if:\n\n(a) during a particular derivation period of a trust, an individual receives a distribution of corpus from the trust (the distribution); and\n\n(b) the individual is an attributable stakeholder of the trust during an attribution period that corresponds with the derivation period of the trust; and\n\n(c) the distribution made to the attributable stakeholder is part of a distribution to all attributable stakeholders of the trust (the total distribution); and\n\n(d) the proportion that the distribution to each attributable stakeholder bears to the total distribution, expressed as a percentage, is the same as the attributable stakeholder’s asset attribution percentage in relation to the trust.\n\n(2) For paragraph 52ZZL(2)(d) of the Act, the Commission must consider determining that the ordinary income of the individual received during the attribution period does not include the amount or value of the distribution if, but for this section, the distribution would be included in the ordinary income of the individual for that period.\n\n(3) For paragraph 52ZZL(2)(e) of the Act, the Commission must consider determining that the ordinary income of the individual received during the attribution period does not include any part of the amount or value of the distribution if, but for this section, any part of the amount or value of the distribution would be included in the ordinary income of the individual for that period.\n\n### 18 No double counting of attributed income—other distributions by trust\n\n(1) This section applies if:\n\n(a) during a particular derivation period of a trust, an individual receives a distribution of corpus or income from the trust (the distribution); and\n\n(b) the individual is an attributable stakeholder of the trust during an attribution period that corresponds with the derivation period of the trust; and\n\n(c) the distribution is made in circumstances other than those mentioned in section 14 and paragraphs 17(1)(c) and (d); and\n\n(d) the individual is taken to receive additional ordinary income, during that attribution period, in accordance with subsection 52ZZK(1) of the Act.\n\n(2) For paragraph 52ZZL(2)(d) of the Act, if the amount of the distribution is less than, or equal to, the additional ordinary income that the individual is taken to receive in accordance with subsection 52ZZK(1) of the Act during the attribution period, the Commission must consider determining that the ordinary income of the individual received during that period does not include the amount of that distribution.\n\n(3) For paragraph 52ZZL(2)(e) of the Act, if the amount of the distribution exceeds the additional ordinary income that the individual is taken to receive in accordance with subsection 52ZZK(1) of the Act during the attribution period, the Commission must consider determining that the ordinary income of the individual received during that period does not include so much of the amount of the distribution that equals the additional ordinary income that the individual is taken to receive in accordance with subsection 52ZZK(1) of the Act.\n\n  \n\n# Part 4 Determination of derivation period (Act, s 52ZZP)\n\n### 19 Derivation period must reflect typical income\n\n(1) This section applies to the determination of a specified period as the derivation period of a specified company or trust in relation to an attributable stakeholder of the company or trust.\n\n(2) The derivation period must be a period that is determined having regard to the following matters:\n\n(a) the ordinary income of the company or trust for a derivation period referred to in subsection 52ZZP(1) of the Act;\n\n(b) the ordinary income of the company or trust for any other period or periods that may reasonably be regarded as typical earning periods for the company or trust;\n\n(c) any circumstances affecting the company or trust during the periods referred to in paragraphs (a) and (b);\n\n(d) whether, having regard to any circumstances referred to in paragraph (c), it is appropriate to use a derivation period different from the derivation period referred to in subsection 52ZZP(1) of the Act.\n\n  \n\n# Part 5 Determination of attribution period (Act, s 52ZZQ)\n\n### 20 Attribution period must reflect typical circumstances\n\n(1) This section applies to the determination of an attribution period in relation to:\n\n(a) a specified individual who is an attributable stakeholder of a specified company or trust; and\n\n(b) a specified derivation period of the company or trust.\n\n(2) The attribution period must be a period that is determined having regard to the following matters:\n\n(a) the ordinary income of the attributable stakeholder for the derivation period;\n\n(b) the ordinary income of the attributable stakeholder for any other period or periods that may reasonably be regarded as typical earning periods for the attributable stakeholder;\n\n(c) any circumstances affecting the attributable stakeholder during the periods referred to in paragraphs (a) and (b);\n\n(d) any circumstances that may reasonably be regarded as likely to affect the ordinary income of the attributable stakeholder.","sortOrder":0},{"sectionNumber":"1","sectionType":"division","heading":"Name","content":"### 1 Name\n\nThis instrument is the Veterans’ Entitlements (Attribution of Income) Principles 2025.","sortOrder":1},{"sectionNumber":"2","sectionType":"division","heading":"Commencement","content":"### 2 Commencement\n\nThis instrument commences on the day after the day it is registered.","sortOrder":2},{"sectionNumber":"3","sectionType":"division","heading":"Authority","content":"### 3 Authority\n\nThis instrument is made under section 52ZZZQ of the Veterans’ Entitlements Act 1986.","sortOrder":3},{"sectionNumber":"3A","sectionType":"division","heading":"Repeal","content":"### 3A Repeal\n\nSchedule 4 to the Veterans’ Affairs (Legislative Instrument Re-making Exercise) Instrument 2014 is repealed.","sortOrder":4},{"sectionNumber":"4","sectionType":"division","heading":"Definitions","content":"### 4 Definitions\n\n> Note: A number of expressions used in this instrument are defined in the Act, including the following:\n\n    (a) attributable stakeholder – of a company or trust (see section 52ZZJ);\n    (b) Commission (see section 5Q);\n    (c) company (see section 52ZO);\n    (d) member of a couple (see section 5E);\n    (e) partner (see section 5E);\n    (f) trust (see section 52ZO of the Act).\n  In this instrument, unless the contrary intention appears:\n\n> Act means the Veterans’ Entitlements Act 1986.\n\n> attributable income, in relation to an individual who is an attributable stakeholder of a company or trust, means income that the individual is taken to receive during an attribution period of the company or trust.\n\n> distribution, in relation to a trust, includes an amount credited by a trust to a beneficiary of the trust.","sortOrder":5},{"sectionNumber":"4A","sectionType":"division","heading":"Purpose","content":"### 4A Purpose\n\n  This instrument sets out decision-making principles with which the Commission must comply in making the following determinations:\n\n(a) a determination under subsection 52ZZK(2) of the Act that, for the purposes of the application of subsection 52ZZK(1) of the Act to a specified individual and a specified company or trust, a specified amount is excluded income;\n\n(b) a determination under section 52ZZL of the Act that the ordinary income of an individual does not include the amount or value of a distribution, or a part of the amount or value of a distribution, to the individual by a company or trust;\n\n(c) a determination under section 52ZZP(3) of the Act that a specified period is a derivation period of a company or trust for the purposes of the application of Subdivision G of Division 11A of Part IIIB of the Act to a specified individual and to a specified company or trust;\n\n(d) a determination under section 52ZZQ(1) of the Act that a specified period is an attribution period for the purposes of the application of Division 11A of Part IIIB of the Act to a specified individual and to a specified company or trust.","sortOrder":6},{"sectionNumber":"Part 2","sectionType":"part","heading":"Determination about excluded income (Act, s 52ZZK)","content":"# Part 1 Preliminary\n\n### 1 Name\n\nThis instrument is the Veterans’ Entitlements (Attribution of Income) Principles 2025.\n\n### 2 Commencement\n\nThis instrument commences on the day after the day it is registered.\n\n### 3 Authority\n\nThis instrument is made under section 52ZZZQ of the Veterans’ Entitlements Act 1986.\n\n### 3A Repeal\n\nSchedule 4 to the Veterans’ Affairs (Legislative Instrument Re-making Exercise) Instrument 2014 is repealed.\n\n### 4 Definitions\n\n> Note: A number of expressions used in this instrument are defined in the Act, including the following:\n\n    (a) attributable stakeholder – of a company or trust (see section 52ZZJ);\n    (b) Commission (see section 5Q);\n    (c) company (see section 52ZO);\n    (d) member of a couple (see section 5E);\n    (e) partner (see section 5E);\n    (f) trust (see section 52ZO of the Act).\n  In this instrument, unless the contrary intention appears:\n\n> Act means the Veterans’ Entitlements Act 1986.\n\n> attributable income, in relation to an individual who is an attributable stakeholder of a company or trust, means income that the individual is taken to receive during an attribution period of the company or trust.\n\n> distribution, in relation to a trust, includes an amount credited by a trust to a beneficiary of the trust.\n\n### 4A Purpose\n\n  This instrument sets out decision-making principles with which the Commission must comply in making the following determinations:\n\n(a) a determination under subsection 52ZZK(2) of the Act that, for the purposes of the application of subsection 52ZZK(1) of the Act to a specified individual and a specified company or trust, a specified amount is excluded income;\n\n(b) a determination under section 52ZZL of the Act that the ordinary income of an individual does not include the amount or value of a distribution, or a part of the amount or value of a distribution, to the individual by a company or trust;\n\n(c) a determination under section 52ZZP(3) of the Act that a specified period is a derivation period of a company or trust for the purposes of the application of Subdivision G of Division 11A of Part IIIB of the Act to a specified individual and to a specified company or trust;\n\n(d) a determination under section 52ZZQ(1) of the Act that a specified period is an attribution period for the purposes of the application of Division 11A of Part IIIB of the Act to a specified individual and to a specified company or trust.\n\n  \n\n# Part 2 Determination about excluded income (Act, s 52ZZK)\n\n## Division 2.1 No double counting—both members of couple are attributable stakeholders of company or trust\n\n### 5 Application of Division 2.1\n\n  This Division applies if, in respect of an individual, the following circumstances exist:\n\n(a) the individual is a member of a couple;\n\n(b) the individual and the individual’s partner are attributable stakeholders of a company or trust;\n\n(c) during a derivation period of the company or trust, the individual:\n\n(i) may, or may not, receive a distribution from the company or trust; but\n\n(ii) is taken to receive an amount of attributable income during the attribution period that relates to the derivation period;\n\n(d) during the derivation period mentioned in paragraph (c), the individual’s partner:\n\n(i) receives a distribution from the company or trust; and\n\n(ii) is taken to receive an amount of attributable income during the attribution period that relates to the derivation period.\n\n### 6 Sum of distributions is the same as sum of attributable income\n\n  (1) This section applies if:\n\n(a) the sum of the distributions mentioned in subparagraphs 5(c)(i) (if any) and 5(d)(i) is the same as the sum of the attributable income mentioned in subparagraphs 5(c)(ii) and 5(d)(ii); but\n\n(b) the amount of the distribution mentioned in subparagraph 5(d)(i) is greater than the amount of attributable income mentioned in subparagraph 5 (d)(ii).\n\n  (2) The Commission must consider determining that the difference between the amounts referred to in paragraph (1)(b) is excluded income in relation to the attributable income of the individual mentioned in paragraph 5(c).\n\n### 7 Sum of distributions is less than sum of attributable income\n\n(1) This section applies if:\n\n(a) the sum of the distributions mentioned in subparagraphs 5 (c)(i) (if any) and 5(d)(i) is less than the sum of the attributable income mentioned in subparagraphs 5(c)(ii) and 5(d)(ii); but\n\n(b) the amount of the distribution mentioned in subparagraph 5(d)(i) is greater than the amount of attributable income mentioned in subparagraph 5(d)(ii).\n\n(2) The Commission must consider determining that the difference between the amounts referred to in paragraph (1)(b) is excluded income in relation to the attributable income of the individual mentioned in paragraph 5(c).\n\n### 8 Sum of distributions is greater than sum of attributable income\n\n(1) This section applies if:\n\n(a) the sum of the distributions mentioned in subparagraphs 5(c)(i) (if any) and 5(d)(i) is greater than the sum of the attributable income mentioned in subparagraphs 5(c)(ii) and 5(d)(ii); but\n\n(b) the amount of the distribution mentioned in subparagraph 5(c)(i) (if any) is less than the amount of attributable income mentioned in subparagraph 5(c)(ii).\n\n(2) The Commission must consider determining that the difference between the amounts referred to in paragraph (1)(b) is excluded income in relation to the attributable income of the individual mentioned in paragraph 5(c).\n\n## Division 2.2 No double counting—one member of couple is not attributable stakeholder\n\n### 9 Distribution made to partner who is not attributable stakeholder\n\n(1) This section applies if, in respect of an individual, the following circumstances exist:\n\n(a) the individual is a member of a couple;\n\n(b) the individual is an attributable stakeholder of a company or trust, but the individual’s partner is not an attributable stakeholder of the company or trust;\n\n(c) during a derivation period of the company or trust, the individual:\n\n(i) may, or may not, receive a distribution from the company or trust; but\n\n(ii) is taken to receive an amount of attributable income during the attribution period that relates to the derivation period;\n\n(d) during the derivation period mentioned in paragraph (c), the individual’s partner receives a distribution from the company or trust.\n\n(2) The Commission must consider determining that an amount equal to the amount of the distribution received by the partner is excluded income in relation to the attributable stakeholder.\n\n## Division 2.3 Investor makes genuine transfer and receives distribution or credit\n\n### 10 Application of Division 2.3\n\nThis Division applies if:\n\n(a) an individual (the investor) makes a genuine transfer of capital to a company or trust of which the investor is not an attributable stakeholder; and\n\n(b) during a derivation period of the company or trust, the investor receives a distribution from the company or trust.\n\n### 11 Genuine transfer of capital\n\nFor section 10, a transfer of capital is a genuine transfer of capital if:\n\n(a) the investor receives, as consideration for the transfer, shares in the company, or units in the trust, of a value that is equivalent to the value of the capital transferred; and\n\n(b) the investor has a legal or equitable right to a share of the capital of the company or trust; and\n\n(c) the investor has a legal or equitable right to receive dividends or distributions in accordance with the constituent documents of the company or the terms of the trust; and\n\n(d) the investor is over 18 years of age.\n\n### 12 Excluded income\n\n(1) This section applies if:\n\n(a) an individual who is an attributable stakeholder of a company or trust is taken to receive attributable income in accordance with subsection 52ZZK(1) of the Act; and\n\n(b) the attributable income of the individual is taken to include additional ordinary income in the circumstances mentioned in section 10.\n\n(2) The Commission must consider determining that the amount of additional ordinary income worked out in accordance with subsection (3) is excluded income in relation to the attributable stakeholder.\n\n(3) The amount of excluded income is worked out by multiplying the amount of the distribution mentioned in paragraph 10(b) by the income attribution percentage of the attributable stakeholder.\n\n  \n\n# Part 3 Determination about excluded income (Act, s 52ZZL)\n\n## Division 3.1 No double counting of attributed income—general\n\n### 13 No double counting of attributed income—general\n\n(1) For paragraphs 52ZZL(1)(d) and (e) and (2)(d) and (e) of the Act, the Commission must have regard to the ordinary income of the individual received during the relevant attribution period and consider if the individual is an attributable stakeholder of:\n\n(a) more than 1 controlled private company; or\n\n(b) more than 1 controlled private trust; or\n\n(c) at least 1 controlled private company and 1 controlled private trust.\n\n(2) For paragraphs 52ZZL(1)(d) and (e) and (2)(d) and (e) of the Act, the Commission must also consider if a company or trust mentioned in subsection (1) has derived an amount, directly or indirectly, by way of dividend or other distribution from another controlled private company or controlled private trust.\n\n### 14 No double counting if ordinary income significantly diminished\n\n(1) This section applies if:\n\n(a) a company or trust makes a distribution to an individual who is an attributable stakeholder of the company or trust; and\n\n(b) the individual would, but for this section, be taken to receive an amount of ordinary income over a period of 12 months in accordance with section 46A of the Act; and\n\n(c) the ordinary income of the individual derived from the company or trust during an attribution period has ceased, or is significantly diminished, because the company or trust:\n\n(i) has been wound-up or otherwise ceased to exist; or\n\n(ii) has been subject to circumstances adversely affecting its profitability.\n\n(2) For paragraphs 52ZZL(1)(d) and (e) and (2)(d) and (e) of the Act, the Commission must consider:\n\n(a) whether, in all the circumstances, the application of section 46A of the Act would be unfair or unreasonable in relation to the individual; and\n\n(b) if section 46A applies unfairly or unreasonably in relation to the individual, determining that the ordinary income of the individual does not include the whole or part of the amount or value distributed to the individual.\n\n## Division 3.2 Distributions by companies\n\n### 15 No double counting of attributed income—distribution by company to all attributable stakeholders\n\n(1) This section applies if:\n\n(a) during a particular derivation period of a company, an individual receives a distribution of capital from the company (the distribution); and\n\n(b) the individual is an attributable stakeholder of the company during an attribution period that corresponds with the derivation period of the company; and\n\n(c) the distribution made to the attributable stakeholder is part of a distribution to all attributable stakeholders of the company (the total distribution); and\n\n(d) the proportion that the distribution to each attributable stakeholder bears to the total distribution, expressed as a percentage, is the same as each attributable stakeholder’s asset attribution percentage in relation to the company.\n\n(2) For paragraph 52ZZL(1)(d) of the Act, the Commission must consider determining that the ordinary income of the individual received during the attribution period does not include the distribution if, but for this section, the amount or value of the distribution would be included in the ordinary income of the individual for that period.\n\n(3) For paragraph 52ZZL(1)(e) of the Act, the Commission must consider determining that the ordinary income of the individual received during the attribution period does not include any part of the amount or value of the distribution if, but for this section, any part of the amount or value of the distribution would be included in the ordinary income of the individual for that period.\n\n### 16 No double counting of attributed income—other distributions by a company\n\n(1) This section applies if:\n\n(a) during a particular derivation period of a company, an individual receives a distribution of capital or profits from the company (the distribution); and\n\n(b) the individual is an attributable stakeholder of the company during an attribution period that corresponds with the derivation period of the company; and\n\n(c) the distribution is made in circumstances other than those mentioned in section 14 and paragraphs 15(1)(c) and (d); and\n\n(d) the individual is taken to receive additional ordinary income during that attribution period in accordance with subsection 52ZZK(1) of the Act.\n\n(2) For paragraph 52ZZL(1)(d) of the Act, if the amount of the distribution is less than, or equal to, the additional ordinary income that the individual is taken to receive in accordance with subsection 52ZZK(1) of the Act during the attribution period, the Commission must consider determining that the ordinary income of the individual received during that period does not include the amount of that distribution.\n\n(3) For paragraph 52ZZL(1)(e) of the Act, if the amount of the distribution exceeds the additional ordinary income that the individual is taken to receive in accordance with subsection 52ZZK(1) of the Act during the attribution period, the Commission must consider determining that the ordinary income of the individual received during that period does not include so much of the amount of the distribution that equals the additional ordinary income that the individual is taken to receive in accordance with subsection 52ZZK(1) of the Act.\n\n## Division 3.3 Distributions by trusts\n\n### 17 No double counting of attributed income—distribution by trust to all attributable stakeholders\n\n(1) This section applies if:\n\n(a) during a particular derivation period of a trust, an individual receives a distribution of corpus from the trust (the distribution); and\n\n(b) the individual is an attributable stakeholder of the trust during an attribution period that corresponds with the derivation period of the trust; and\n\n(c) the distribution made to the attributable stakeholder is part of a distribution to all attributable stakeholders of the trust (the total distribution); and\n\n(d) the proportion that the distribution to each attributable stakeholder bears to the total distribution, expressed as a percentage, is the same as the attributable stakeholder’s asset attribution percentage in relation to the trust.\n\n(2) For paragraph 52ZZL(2)(d) of the Act, the Commission must consider determining that the ordinary income of the individual received during the attribution period does not include the amount or value of the distribution if, but for this section, the distribution would be included in the ordinary income of the individual for that period.\n\n(3) For paragraph 52ZZL(2)(e) of the Act, the Commission must consider determining that the ordinary income of the individual received during the attribution period does not include any part of the amount or value of the distribution if, but for this section, any part of the amount or value of the distribution would be included in the ordinary income of the individual for that period.\n\n### 18 No double counting of attributed income—other distributions by trust\n\n(1) This section applies if:\n\n(a) during a particular derivation period of a trust, an individual receives a distribution of corpus or income from the trust (the distribution); and\n\n(b) the individual is an attributable stakeholder of the trust during an attribution period that corresponds with the derivation period of the trust; and\n\n(c) the distribution is made in circumstances other than those mentioned in section 14 and paragraphs 17(1)(c) and (d); and\n\n(d) the individual is taken to receive additional ordinary income, during that attribution period, in accordance with subsection 52ZZK(1) of the Act.\n\n(2) For paragraph 52ZZL(2)(d) of the Act, if the amount of the distribution is less than, or equal to, the additional ordinary income that the individual is taken to receive in accordance with subsection 52ZZK(1) of the Act during the attribution period, the Commission must consider determining that the ordinary income of the individual received during that period does not include the amount of that distribution.\n\n(3) For paragraph 52ZZL(2)(e) of the Act, if the amount of the distribution exceeds the additional ordinary income that the individual is taken to receive in accordance with subsection 52ZZK(1) of the Act during the attribution period, the Commission must consider determining that the ordinary income of the individual received during that period does not include so much of the amount of the distribution that equals the additional ordinary income that the individual is taken to receive in accordance with subsection 52ZZK(1) of the Act.\n\n  \n\n# Part 4 Determination of derivation period (Act, s 52ZZP)\n\n### 19 Derivation period must reflect typical income\n\n(1) This section applies to the determination of a specified period as the derivation period of a specified company or trust in relation to an attributable stakeholder of the company or trust.\n\n(2) The derivation period must be a period that is determined having regard to the following matters:\n\n(a) the ordinary income of the company or trust for a derivation period referred to in subsection 52ZZP(1) of the Act;\n\n(b) the ordinary income of the company or trust for any other period or periods that may reasonably be regarded as typical earning periods for the company or trust;\n\n(c) any circumstances affecting the company or trust during the periods referred to in paragraphs (a) and (b);\n\n(d) whether, having regard to any circumstances referred to in paragraph (c), it is appropriate to use a derivation period different from the derivation period referred to in subsection 52ZZP(1) of the Act.\n\n  \n\n# Part 5 Determination of attribution period (Act, s 52ZZQ)\n\n### 20 Attribution period must reflect typical circumstances\n\n(1) This section applies to the determination of an attribution period in relation to:\n\n(a) a specified individual who is an attributable stakeholder of a specified company or trust; and\n\n(b) a specified derivation period of the company or trust.\n\n(2) The attribution period must be a period that is determined having regard to the following matters:\n\n(a) the ordinary income of the attributable stakeholder for the derivation period;\n\n(b) the ordinary income of the attributable stakeholder for any other period or periods that may reasonably be regarded as typical earning periods for the attributable stakeholder;\n\n(c) any circumstances affecting the attributable stakeholder during the periods referred to in paragraphs (a) and (b);\n\n(d) any circumstances that may reasonably be regarded as likely to affect the ordinary income of the attributable stakeholder.","sortOrder":7},{"sectionNumber":"Division 2.1 No double counting—both mem","sectionType":"part","heading":"Division 2.1 No double counting—both members of couple are attributable stakeholders of company or trust","content":"# Part 1 Preliminary\n\n### 1 Name\n\nThis instrument is the Veterans’ Entitlements (Attribution of Income) Principles 2025.\n\n### 2 Commencement\n\nThis instrument commences on the day after the day it is registered.\n\n### 3 Authority\n\nThis instrument is made under section 52ZZZQ of the Veterans’ Entitlements Act 1986.\n\n### 3A Repeal\n\nSchedule 4 to the Veterans’ Affairs (Legislative Instrument Re-making Exercise) Instrument 2014 is repealed.\n\n### 4 Definitions\n\n> Note: A number of expressions used in this instrument are defined in the Act, including the following:\n\n    (a) attributable stakeholder – of a company or trust (see section 52ZZJ);\n    (b) Commission (see section 5Q);\n    (c) company (see section 52ZO);\n    (d) member of a couple (see section 5E);\n    (e) partner (see section 5E);\n    (f) trust (see section 52ZO of the Act).\n  In this instrument, unless the contrary intention appears:\n\n> Act means the Veterans’ Entitlements Act 1986.\n\n> attributable income, in relation to an individual who is an attributable stakeholder of a company or trust, means income that the individual is taken to receive during an attribution period of the company or trust.\n\n> distribution, in relation to a trust, includes an amount credited by a trust to a beneficiary of the trust.\n\n### 4A Purpose\n\n  This instrument sets out decision-making principles with which the Commission must comply in making the following determinations:\n\n(a) a determination under subsection 52ZZK(2) of the Act that, for the purposes of the application of subsection 52ZZK(1) of the Act to a specified individual and a specified company or trust, a specified amount is excluded income;\n\n(b) a determination under section 52ZZL of the Act that the ordinary income of an individual does not include the amount or value of a distribution, or a part of the amount or value of a distribution, to the individual by a company or trust;\n\n(c) a determination under section 52ZZP(3) of the Act that a specified period is a derivation period of a company or trust for the purposes of the application of Subdivision G of Division 11A of Part IIIB of the Act to a specified individual and to a specified company or trust;\n\n(d) a determination under section 52ZZQ(1) of the Act that a specified period is an attribution period for the purposes of the application of Division 11A of Part IIIB of the Act to a specified individual and to a specified company or trust.\n\n  \n\n# Part 2 Determination about excluded income (Act, s 52ZZK)\n\n## Division 2.1 No double counting—both members of couple are attributable stakeholders of company or trust\n\n### 5 Application of Division 2.1\n\n  This Division applies if, in respect of an individual, the following circumstances exist:\n\n(a) the individual is a member of a couple;\n\n(b) the individual and the individual’s partner are attributable stakeholders of a company or trust;\n\n(c) during a derivation period of the company or trust, the individual:\n\n(i) may, or may not, receive a distribution from the company or trust; but\n\n(ii) is taken to receive an amount of attributable income during the attribution period that relates to the derivation period;\n\n(d) during the derivation period mentioned in paragraph (c), the individual’s partner:\n\n(i) receives a distribution from the company or trust; and\n\n(ii) is taken to receive an amount of attributable income during the attribution period that relates to the derivation period.\n\n### 6 Sum of distributions is the same as sum of attributable income\n\n  (1) This section applies if:\n\n(a) the sum of the distributions mentioned in subparagraphs 5(c)(i) (if any) and 5(d)(i) is the same as the sum of the attributable income mentioned in subparagraphs 5(c)(ii) and 5(d)(ii); but\n\n(b) the amount of the distribution mentioned in subparagraph 5(d)(i) is greater than the amount of attributable income mentioned in subparagraph 5 (d)(ii).\n\n  (2) The Commission must consider determining that the difference between the amounts referred to in paragraph (1)(b) is excluded income in relation to the attributable income of the individual mentioned in paragraph 5(c).\n\n### 7 Sum of distributions is less than sum of attributable income\n\n(1) This section applies if:\n\n(a) the sum of the distributions mentioned in subparagraphs 5 (c)(i) (if any) and 5(d)(i) is less than the sum of the attributable income mentioned in subparagraphs 5(c)(ii) and 5(d)(ii); but\n\n(b) the amount of the distribution mentioned in subparagraph 5(d)(i) is greater than the amount of attributable income mentioned in subparagraph 5(d)(ii).\n\n(2) The Commission must consider determining that the difference between the amounts referred to in paragraph (1)(b) is excluded income in relation to the attributable income of the individual mentioned in paragraph 5(c).\n\n### 8 Sum of distributions is greater than sum of attributable income\n\n(1) This section applies if:\n\n(a) the sum of the distributions mentioned in subparagraphs 5(c)(i) (if any) and 5(d)(i) is greater than the sum of the attributable income mentioned in subparagraphs 5(c)(ii) and 5(d)(ii); but\n\n(b) the amount of the distribution mentioned in subparagraph 5(c)(i) (if any) is less than the amount of attributable income mentioned in subparagraph 5(c)(ii).\n\n(2) The Commission must consider determining that the difference between the amounts referred to in paragraph (1)(b) is excluded income in relation to the attributable income of the individual mentioned in paragraph 5(c).\n\n## Division 2.2 No double counting—one member of couple is not attributable stakeholder\n\n### 9 Distribution made to partner who is not attributable stakeholder\n\n(1) This section applies if, in respect of an individual, the following circumstances exist:\n\n(a) the individual is a member of a couple;\n\n(b) the individual is an attributable stakeholder of a company or trust, but the individual’s partner is not an attributable stakeholder of the company or trust;\n\n(c) during a derivation period of the company or trust, the individual:\n\n(i) may, or may not, receive a distribution from the company or trust; but\n\n(ii) is taken to receive an amount of attributable income during the attribution period that relates to the derivation period;\n\n(d) during the derivation period mentioned in paragraph (c), the individual’s partner receives a distribution from the company or trust.\n\n(2) The Commission must consider determining that an amount equal to the amount of the distribution received by the partner is excluded income in relation to the attributable stakeholder.\n\n## Division 2.3 Investor makes genuine transfer and receives distribution or credit\n\n### 10 Application of Division 2.3\n\nThis Division applies if:\n\n(a) an individual (the investor) makes a genuine transfer of capital to a company or trust of which the investor is not an attributable stakeholder; and\n\n(b) during a derivation period of the company or trust, the investor receives a distribution from the company or trust.\n\n### 11 Genuine transfer of capital\n\nFor section 10, a transfer of capital is a genuine transfer of capital if:\n\n(a) the investor receives, as consideration for the transfer, shares in the company, or units in the trust, of a value that is equivalent to the value of the capital transferred; and\n\n(b) the investor has a legal or equitable right to a share of the capital of the company or trust; and\n\n(c) the investor has a legal or equitable right to receive dividends or distributions in accordance with the constituent documents of the company or the terms of the trust; and\n\n(d) the investor is over 18 years of age.\n\n### 12 Excluded income\n\n(1) This section applies if:\n\n(a) an individual who is an attributable stakeholder of a company or trust is taken to receive attributable income in accordance with subsection 52ZZK(1) of the Act; and\n\n(b) the attributable income of the individual is taken to include additional ordinary income in the circumstances mentioned in section 10.\n\n(2) The Commission must consider determining that the amount of additional ordinary income worked out in accordance with subsection (3) is excluded income in relation to the attributable stakeholder.\n\n(3) The amount of excluded income is worked out by multiplying the amount of the distribution mentioned in paragraph 10(b) by the income attribution percentage of the attributable stakeholder.\n\n  \n\n# Part 3 Determination about excluded income (Act, s 52ZZL)\n\n## Division 3.1 No double counting of attributed income—general\n\n### 13 No double counting of attributed income—general\n\n(1) For paragraphs 52ZZL(1)(d) and (e) and (2)(d) and (e) of the Act, the Commission must have regard to the ordinary income of the individual received during the relevant attribution period and consider if the individual is an attributable stakeholder of:\n\n(a) more than 1 controlled private company; or\n\n(b) more than 1 controlled private trust; or\n\n(c) at least 1 controlled private company and 1 controlled private trust.\n\n(2) For paragraphs 52ZZL(1)(d) and (e) and (2)(d) and (e) of the Act, the Commission must also consider if a company or trust mentioned in subsection (1) has derived an amount, directly or indirectly, by way of dividend or other distribution from another controlled private company or controlled private trust.\n\n### 14 No double counting if ordinary income significantly diminished\n\n(1) This section applies if:\n\n(a) a company or trust makes a distribution to an individual who is an attributable stakeholder of the company or trust; and\n\n(b) the individual would, but for this section, be taken to receive an amount of ordinary income over a period of 12 months in accordance with section 46A of the Act; and\n\n(c) the ordinary income of the individual derived from the company or trust during an attribution period has ceased, or is significantly diminished, because the company or trust:\n\n(i) has been wound-up or otherwise ceased to exist; or\n\n(ii) has been subject to circumstances adversely affecting its profitability.\n\n(2) For paragraphs 52ZZL(1)(d) and (e) and (2)(d) and (e) of the Act, the Commission must consider:\n\n(a) whether, in all the circumstances, the application of section 46A of the Act would be unfair or unreasonable in relation to the individual; and\n\n(b) if section 46A applies unfairly or unreasonably in relation to the individual, determining that the ordinary income of the individual does not include the whole or part of the amount or value distributed to the individual.\n\n## Division 3.2 Distributions by companies\n\n### 15 No double counting of attributed income—distribution by company to all attributable stakeholders\n\n(1) This section applies if:\n\n(a) during a particular derivation period of a company, an individual receives a distribution of capital from the company (the distribution); and\n\n(b) the individual is an attributable stakeholder of the company during an attribution period that corresponds with the derivation period of the company; and\n\n(c) the distribution made to the attributable stakeholder is part of a distribution to all attributable stakeholders of the company (the total distribution); and\n\n(d) the proportion that the distribution to each attributable stakeholder bears to the total distribution, expressed as a percentage, is the same as each attributable stakeholder’s asset attribution percentage in relation to the company.\n\n(2) For paragraph 52ZZL(1)(d) of the Act, the Commission must consider determining that the ordinary income of the individual received during the attribution period does not include the distribution if, but for this section, the amount or value of the distribution would be included in the ordinary income of the individual for that period.\n\n(3) For paragraph 52ZZL(1)(e) of the Act, the Commission must consider determining that the ordinary income of the individual received during the attribution period does not include any part of the amount or value of the distribution if, but for this section, any part of the amount or value of the distribution would be included in the ordinary income of the individual for that period.\n\n### 16 No double counting of attributed income—other distributions by a company\n\n(1) This section applies if:\n\n(a) during a particular derivation period of a company, an individual receives a distribution of capital or profits from the company (the distribution); and\n\n(b) the individual is an attributable stakeholder of the company during an attribution period that corresponds with the derivation period of the company; and\n\n(c) the distribution is made in circumstances other than those mentioned in section 14 and paragraphs 15(1)(c) and (d); and\n\n(d) the individual is taken to receive additional ordinary income during that attribution period in accordance with subsection 52ZZK(1) of the Act.\n\n(2) For paragraph 52ZZL(1)(d) of the Act, if the amount of the distribution is less than, or equal to, the additional ordinary income that the individual is taken to receive in accordance with subsection 52ZZK(1) of the Act during the attribution period, the Commission must consider determining that the ordinary income of the individual received during that period does not include the amount of that distribution.\n\n(3) For paragraph 52ZZL(1)(e) of the Act, if the amount of the distribution exceeds the additional ordinary income that the individual is taken to receive in accordance with subsection 52ZZK(1) of the Act during the attribution period, the Commission must consider determining that the ordinary income of the individual received during that period does not include so much of the amount of the distribution that equals the additional ordinary income that the individual is taken to receive in accordance with subsection 52ZZK(1) of the Act.\n\n## Division 3.3 Distributions by trusts\n\n### 17 No double counting of attributed income—distribution by trust to all attributable stakeholders\n\n(1) This section applies if:\n\n(a) during a particular derivation period of a trust, an individual receives a distribution of corpus from the trust (the distribution); and\n\n(b) the individual is an attributable stakeholder of the trust during an attribution period that corresponds with the derivation period of the trust; and\n\n(c) the distribution made to the attributable stakeholder is part of a distribution to all attributable stakeholders of the trust (the total distribution); and\n\n(d) the proportion that the distribution to each attributable stakeholder bears to the total distribution, expressed as a percentage, is the same as the attributable stakeholder’s asset attribution percentage in relation to the trust.\n\n(2) For paragraph 52ZZL(2)(d) of the Act, the Commission must consider determining that the ordinary income of the individual received during the attribution period does not include the amount or value of the distribution if, but for this section, the distribution would be included in the ordinary income of the individual for that period.\n\n(3) For paragraph 52ZZL(2)(e) of the Act, the Commission must consider determining that the ordinary income of the individual received during the attribution period does not include any part of the amount or value of the distribution if, but for this section, any part of the amount or value of the distribution would be included in the ordinary income of the individual for that period.\n\n### 18 No double counting of attributed income—other distributions by trust\n\n(1) This section applies if:\n\n(a) during a particular derivation period of a trust, an individual receives a distribution of corpus or income from the trust (the distribution); and\n\n(b) the individual is an attributable stakeholder of the trust during an attribution period that corresponds with the derivation period of the trust; and\n\n(c) the distribution is made in circumstances other than those mentioned in section 14 and paragraphs 17(1)(c) and (d); and\n\n(d) the individual is taken to receive additional ordinary income, during that attribution period, in accordance with subsection 52ZZK(1) of the Act.\n\n(2) For paragraph 52ZZL(2)(d) of the Act, if the amount of the distribution is less than, or equal to, the additional ordinary income that the individual is taken to receive in accordance with subsection 52ZZK(1) of the Act during the attribution period, the Commission must consider determining that the ordinary income of the individual received during that period does not include the amount of that distribution.\n\n(3) For paragraph 52ZZL(2)(e) of the Act, if the amount of the distribution exceeds the additional ordinary income that the individual is taken to receive in accordance with subsection 52ZZK(1) of the Act during the attribution period, the Commission must consider determining that the ordinary income of the individual received during that period does not include so much of the amount of the distribution that equals the additional ordinary income that the individual is taken to receive in accordance with subsection 52ZZK(1) of the Act.\n\n  \n\n# Part 4 Determination of derivation period (Act, s 52ZZP)\n\n### 19 Derivation period must reflect typical income\n\n(1) This section applies to the determination of a specified period as the derivation period of a specified company or trust in relation to an attributable stakeholder of the company or trust.\n\n(2) The derivation period must be a period that is determined having regard to the following matters:\n\n(a) the ordinary income of the company or trust for a derivation period referred to in subsection 52ZZP(1) of the Act;\n\n(b) the ordinary income of the company or trust for any other period or periods that may reasonably be regarded as typical earning periods for the company or trust;\n\n(c) any circumstances affecting the company or trust during the periods referred to in paragraphs (a) and (b);\n\n(d) whether, having regard to any circumstances referred to in paragraph (c), it is appropriate to use a derivation period different from the derivation period referred to in subsection 52ZZP(1) of the Act.\n\n  \n\n# Part 5 Determination of attribution period (Act, s 52ZZQ)\n\n### 20 Attribution period must reflect typical circumstances\n\n(1) This section applies to the determination of an attribution period in relation to:\n\n(a) a specified individual who is an attributable stakeholder of a specified company or trust; and\n\n(b) a specified derivation period of the company or trust.\n\n(2) The attribution period must be a period that is determined having regard to the following matters:\n\n(a) the ordinary income of the attributable stakeholder for the derivation period;\n\n(b) the ordinary income of the attributable stakeholder for any other period or periods that may reasonably be regarded as typical earning periods for the attributable stakeholder;\n\n(c) any circumstances affecting the attributable stakeholder during the periods referred to in paragraphs (a) and (b);\n\n(d) any circumstances that may reasonably be regarded as likely to affect the ordinary income of the attributable stakeholder.","sortOrder":8},{"sectionNumber":"5","sectionType":"division","heading":"Application of Division 2.1","content":"### 5 Application of Division 2.1\n\n  This Division applies if, in respect of an individual, the following circumstances exist:\n\n(a) the individual is a member of a couple;\n\n(b) the individual and the individual’s partner are attributable stakeholders of a company or trust;\n\n(c) during a derivation period of the company or trust, the individual:\n\n(i) may, or may not, receive a distribution from the company or trust; but\n\n(ii) is taken to receive an amount of attributable income during the attribution period that relates to the derivation period;\n\n(d) during the derivation period mentioned in paragraph (c), the individual’s partner:\n\n(i) receives a distribution from the company or trust; and\n\n(ii) is taken to receive an amount of attributable income during the attribution period that relates to the derivation period.","sortOrder":9},{"sectionNumber":"6","sectionType":"division","heading":"Sum of distributions is the same as sum of attributable income","content":"### 6 Sum of distributions is the same as sum of attributable income\n\n  (1) This section applies if:\n\n(a) the sum of the distributions mentioned in subparagraphs 5(c)(i) (if any) and 5(d)(i) is the same as the sum of the attributable income mentioned in subparagraphs 5(c)(ii) and 5(d)(ii); but\n\n(b) the amount of the distribution mentioned in subparagraph 5(d)(i) is greater than the amount of attributable income mentioned in subparagraph 5 (d)(ii).\n\n  (2) The Commission must consider determining that the difference between the amounts referred to in paragraph (1)(b) is excluded income in relation to the attributable income of the individual mentioned in paragraph 5(c).","sortOrder":10},{"sectionNumber":"7","sectionType":"division","heading":"Sum of distributions is less than sum of attributable income","content":"### 7 Sum of distributions is less than sum of attributable income\n\n(1) This section applies if:\n\n(a) the sum of the distributions mentioned in subparagraphs 5 (c)(i) (if any) and 5(d)(i) is less than the sum of the attributable income mentioned in subparagraphs 5(c)(ii) and 5(d)(ii); but\n\n(b) the amount of the distribution mentioned in subparagraph 5(d)(i) is greater than the amount of attributable income mentioned in subparagraph 5(d)(ii).\n\n(2) The Commission must consider determining that the difference between the amounts referred to in paragraph (1)(b) is excluded income in relation to the attributable income of the individual mentioned in paragraph 5(c).","sortOrder":11},{"sectionNumber":"8","sectionType":"division","heading":"Sum of distributions is greater than sum of attributable income","content":"### 8 Sum of distributions is greater than sum of attributable income\n\n(1) This section applies if:\n\n(a) the sum of the distributions mentioned in subparagraphs 5(c)(i) (if any) and 5(d)(i) is greater than the sum of the attributable income mentioned in subparagraphs 5(c)(ii) and 5(d)(ii); but\n\n(b) the amount of the distribution mentioned in subparagraph 5(c)(i) (if any) is less than the amount of attributable income mentioned in subparagraph 5(c)(ii).\n\n(2) The Commission must consider determining that the difference between the amounts referred to in paragraph (1)(b) is excluded income in relation to the attributable income of the individual mentioned in paragraph 5(c).","sortOrder":12},{"sectionNumber":"Division 2.2 No double counting—one memb","sectionType":"part","heading":"Division 2.2 No double counting—one member of couple is not attributable stakeholder","content":"# Part 1 Preliminary\n\n### 1 Name\n\nThis instrument is the Veterans’ Entitlements (Attribution of Income) Principles 2025.\n\n### 2 Commencement\n\nThis instrument commences on the day after the day it is registered.\n\n### 3 Authority\n\nThis instrument is made under section 52ZZZQ of the Veterans’ Entitlements Act 1986.\n\n### 3A Repeal\n\nSchedule 4 to the Veterans’ Affairs (Legislative Instrument Re-making Exercise) Instrument 2014 is repealed.\n\n### 4 Definitions\n\n> Note: A number of expressions used in this instrument are defined in the Act, including the following:\n\n    (a) attributable stakeholder – of a company or trust (see section 52ZZJ);\n    (b) Commission (see section 5Q);\n    (c) company (see section 52ZO);\n    (d) member of a couple (see section 5E);\n    (e) partner (see section 5E);\n    (f) trust (see section 52ZO of the Act).\n  In this instrument, unless the contrary intention appears:\n\n> Act means the Veterans’ Entitlements Act 1986.\n\n> attributable income, in relation to an individual who is an attributable stakeholder of a company or trust, means income that the individual is taken to receive during an attribution period of the company or trust.\n\n> distribution, in relation to a trust, includes an amount credited by a trust to a beneficiary of the trust.\n\n### 4A Purpose\n\n  This instrument sets out decision-making principles with which the Commission must comply in making the following determinations:\n\n(a) a determination under subsection 52ZZK(2) of the Act that, for the purposes of the application of subsection 52ZZK(1) of the Act to a specified individual and a specified company or trust, a specified amount is excluded income;\n\n(b) a determination under section 52ZZL of the Act that the ordinary income of an individual does not include the amount or value of a distribution, or a part of the amount or value of a distribution, to the individual by a company or trust;\n\n(c) a determination under section 52ZZP(3) of the Act that a specified period is a derivation period of a company or trust for the purposes of the application of Subdivision G of Division 11A of Part IIIB of the Act to a specified individual and to a specified company or trust;\n\n(d) a determination under section 52ZZQ(1) of the Act that a specified period is an attribution period for the purposes of the application of Division 11A of Part IIIB of the Act to a specified individual and to a specified company or trust.\n\n  \n\n# Part 2 Determination about excluded income (Act, s 52ZZK)\n\n## Division 2.1 No double counting—both members of couple are attributable stakeholders of company or trust\n\n### 5 Application of Division 2.1\n\n  This Division applies if, in respect of an individual, the following circumstances exist:\n\n(a) the individual is a member of a couple;\n\n(b) the individual and the individual’s partner are attributable stakeholders of a company or trust;\n\n(c) during a derivation period of the company or trust, the individual:\n\n(i) may, or may not, receive a distribution from the company or trust; but\n\n(ii) is taken to receive an amount of attributable income during the attribution period that relates to the derivation period;\n\n(d) during the derivation period mentioned in paragraph (c), the individual’s partner:\n\n(i) receives a distribution from the company or trust; and\n\n(ii) is taken to receive an amount of attributable income during the attribution period that relates to the derivation period.\n\n### 6 Sum of distributions is the same as sum of attributable income\n\n  (1) This section applies if:\n\n(a) the sum of the distributions mentioned in subparagraphs 5(c)(i) (if any) and 5(d)(i) is the same as the sum of the attributable income mentioned in subparagraphs 5(c)(ii) and 5(d)(ii); but\n\n(b) the amount of the distribution mentioned in subparagraph 5(d)(i) is greater than the amount of attributable income mentioned in subparagraph 5 (d)(ii).\n\n  (2) The Commission must consider determining that the difference between the amounts referred to in paragraph (1)(b) is excluded income in relation to the attributable income of the individual mentioned in paragraph 5(c).\n\n### 7 Sum of distributions is less than sum of attributable income\n\n(1) This section applies if:\n\n(a) the sum of the distributions mentioned in subparagraphs 5 (c)(i) (if any) and 5(d)(i) is less than the sum of the attributable income mentioned in subparagraphs 5(c)(ii) and 5(d)(ii); but\n\n(b) the amount of the distribution mentioned in subparagraph 5(d)(i) is greater than the amount of attributable income mentioned in subparagraph 5(d)(ii).\n\n(2) The Commission must consider determining that the difference between the amounts referred to in paragraph (1)(b) is excluded income in relation to the attributable income of the individual mentioned in paragraph 5(c).\n\n### 8 Sum of distributions is greater than sum of attributable income\n\n(1) This section applies if:\n\n(a) the sum of the distributions mentioned in subparagraphs 5(c)(i) (if any) and 5(d)(i) is greater than the sum of the attributable income mentioned in subparagraphs 5(c)(ii) and 5(d)(ii); but\n\n(b) the amount of the distribution mentioned in subparagraph 5(c)(i) (if any) is less than the amount of attributable income mentioned in subparagraph 5(c)(ii).\n\n(2) The Commission must consider determining that the difference between the amounts referred to in paragraph (1)(b) is excluded income in relation to the attributable income of the individual mentioned in paragraph 5(c).\n\n## Division 2.2 No double counting—one member of couple is not attributable stakeholder\n\n### 9 Distribution made to partner who is not attributable stakeholder\n\n(1) This section applies if, in respect of an individual, the following circumstances exist:\n\n(a) the individual is a member of a couple;\n\n(b) the individual is an attributable stakeholder of a company or trust, but the individual’s partner is not an attributable stakeholder of the company or trust;\n\n(c) during a derivation period of the company or trust, the individual:\n\n(i) may, or may not, receive a distribution from the company or trust; but\n\n(ii) is taken to receive an amount of attributable income during the attribution period that relates to the derivation period;\n\n(d) during the derivation period mentioned in paragraph (c), the individual’s partner receives a distribution from the company or trust.\n\n(2) The Commission must consider determining that an amount equal to the amount of the distribution received by the partner is excluded income in relation to the attributable stakeholder.\n\n## Division 2.3 Investor makes genuine transfer and receives distribution or credit\n\n### 10 Application of Division 2.3\n\nThis Division applies if:\n\n(a) an individual (the investor) makes a genuine transfer of capital to a company or trust of which the investor is not an attributable stakeholder; and\n\n(b) during a derivation period of the company or trust, the investor receives a distribution from the company or trust.\n\n### 11 Genuine transfer of capital\n\nFor section 10, a transfer of capital is a genuine transfer of capital if:\n\n(a) the investor receives, as consideration for the transfer, shares in the company, or units in the trust, of a value that is equivalent to the value of the capital transferred; and\n\n(b) the investor has a legal or equitable right to a share of the capital of the company or trust; and\n\n(c) the investor has a legal or equitable right to receive dividends or distributions in accordance with the constituent documents of the company or the terms of the trust; and\n\n(d) the investor is over 18 years of age.\n\n### 12 Excluded income\n\n(1) This section applies if:\n\n(a) an individual who is an attributable stakeholder of a company or trust is taken to receive attributable income in accordance with subsection 52ZZK(1) of the Act; and\n\n(b) the attributable income of the individual is taken to include additional ordinary income in the circumstances mentioned in section 10.\n\n(2) The Commission must consider determining that the amount of additional ordinary income worked out in accordance with subsection (3) is excluded income in relation to the attributable stakeholder.\n\n(3) The amount of excluded income is worked out by multiplying the amount of the distribution mentioned in paragraph 10(b) by the income attribution percentage of the attributable stakeholder.\n\n  \n\n# Part 3 Determination about excluded income (Act, s 52ZZL)\n\n## Division 3.1 No double counting of attributed income—general\n\n### 13 No double counting of attributed income—general\n\n(1) For paragraphs 52ZZL(1)(d) and (e) and (2)(d) and (e) of the Act, the Commission must have regard to the ordinary income of the individual received during the relevant attribution period and consider if the individual is an attributable stakeholder of:\n\n(a) more than 1 controlled private company; or\n\n(b) more than 1 controlled private trust; or\n\n(c) at least 1 controlled private company and 1 controlled private trust.\n\n(2) For paragraphs 52ZZL(1)(d) and (e) and (2)(d) and (e) of the Act, the Commission must also consider if a company or trust mentioned in subsection (1) has derived an amount, directly or indirectly, by way of dividend or other distribution from another controlled private company or controlled private trust.\n\n### 14 No double counting if ordinary income significantly diminished\n\n(1) This section applies if:\n\n(a) a company or trust makes a distribution to an individual who is an attributable stakeholder of the company or trust; and\n\n(b) the individual would, but for this section, be taken to receive an amount of ordinary income over a period of 12 months in accordance with section 46A of the Act; and\n\n(c) the ordinary income of the individual derived from the company or trust during an attribution period has ceased, or is significantly diminished, because the company or trust:\n\n(i) has been wound-up or otherwise ceased to exist; or\n\n(ii) has been subject to circumstances adversely affecting its profitability.\n\n(2) For paragraphs 52ZZL(1)(d) and (e) and (2)(d) and (e) of the Act, the Commission must consider:\n\n(a) whether, in all the circumstances, the application of section 46A of the Act would be unfair or unreasonable in relation to the individual; and\n\n(b) if section 46A applies unfairly or unreasonably in relation to the individual, determining that the ordinary income of the individual does not include the whole or part of the amount or value distributed to the individual.\n\n## Division 3.2 Distributions by companies\n\n### 15 No double counting of attributed income—distribution by company to all attributable stakeholders\n\n(1) This section applies if:\n\n(a) during a particular derivation period of a company, an individual receives a distribution of capital from the company (the distribution); and\n\n(b) the individual is an attributable stakeholder of the company during an attribution period that corresponds with the derivation period of the company; and\n\n(c) the distribution made to the attributable stakeholder is part of a distribution to all attributable stakeholders of the company (the total distribution); and\n\n(d) the proportion that the distribution to each attributable stakeholder bears to the total distribution, expressed as a percentage, is the same as each attributable stakeholder’s asset attribution percentage in relation to the company.\n\n(2) For paragraph 52ZZL(1)(d) of the Act, the Commission must consider determining that the ordinary income of the individual received during the attribution period does not include the distribution if, but for this section, the amount or value of the distribution would be included in the ordinary income of the individual for that period.\n\n(3) For paragraph 52ZZL(1)(e) of the Act, the Commission must consider determining that the ordinary income of the individual received during the attribution period does not include any part of the amount or value of the distribution if, but for this section, any part of the amount or value of the distribution would be included in the ordinary income of the individual for that period.\n\n### 16 No double counting of attributed income—other distributions by a company\n\n(1) This section applies if:\n\n(a) during a particular derivation period of a company, an individual receives a distribution of capital or profits from the company (the distribution); and\n\n(b) the individual is an attributable stakeholder of the company during an attribution period that corresponds with the derivation period of the company; and\n\n(c) the distribution is made in circumstances other than those mentioned in section 14 and paragraphs 15(1)(c) and (d); and\n\n(d) the individual is taken to receive additional ordinary income during that attribution period in accordance with subsection 52ZZK(1) of the Act.\n\n(2) For paragraph 52ZZL(1)(d) of the Act, if the amount of the distribution is less than, or equal to, the additional ordinary income that the individual is taken to receive in accordance with subsection 52ZZK(1) of the Act during the attribution period, the Commission must consider determining that the ordinary income of the individual received during that period does not include the amount of that distribution.\n\n(3) For paragraph 52ZZL(1)(e) of the Act, if the amount of the distribution exceeds the additional ordinary income that the individual is taken to receive in accordance with subsection 52ZZK(1) of the Act during the attribution period, the Commission must consider determining that the ordinary income of the individual received during that period does not include so much of the amount of the distribution that equals the additional ordinary income that the individual is taken to receive in accordance with subsection 52ZZK(1) of the Act.\n\n## Division 3.3 Distributions by trusts\n\n### 17 No double counting of attributed income—distribution by trust to all attributable stakeholders\n\n(1) This section applies if:\n\n(a) during a particular derivation period of a trust, an individual receives a distribution of corpus from the trust (the distribution); and\n\n(b) the individual is an attributable stakeholder of the trust during an attribution period that corresponds with the derivation period of the trust; and\n\n(c) the distribution made to the attributable stakeholder is part of a distribution to all attributable stakeholders of the trust (the total distribution); and\n\n(d) the proportion that the distribution to each attributable stakeholder bears to the total distribution, expressed as a percentage, is the same as the attributable stakeholder’s asset attribution percentage in relation to the trust.\n\n(2) For paragraph 52ZZL(2)(d) of the Act, the Commission must consider determining that the ordinary income of the individual received during the attribution period does not include the amount or value of the distribution if, but for this section, the distribution would be included in the ordinary income of the individual for that period.\n\n(3) For paragraph 52ZZL(2)(e) of the Act, the Commission must consider determining that the ordinary income of the individual received during the attribution period does not include any part of the amount or value of the distribution if, but for this section, any part of the amount or value of the distribution would be included in the ordinary income of the individual for that period.\n\n### 18 No double counting of attributed income—other distributions by trust\n\n(1) This section applies if:\n\n(a) during a particular derivation period of a trust, an individual receives a distribution of corpus or income from the trust (the distribution); and\n\n(b) the individual is an attributable stakeholder of the trust during an attribution period that corresponds with the derivation period of the trust; and\n\n(c) the distribution is made in circumstances other than those mentioned in section 14 and paragraphs 17(1)(c) and (d); and\n\n(d) the individual is taken to receive additional ordinary income, during that attribution period, in accordance with subsection 52ZZK(1) of the Act.\n\n(2) For paragraph 52ZZL(2)(d) of the Act, if the amount of the distribution is less than, or equal to, the additional ordinary income that the individual is taken to receive in accordance with subsection 52ZZK(1) of the Act during the attribution period, the Commission must consider determining that the ordinary income of the individual received during that period does not include the amount of that distribution.\n\n(3) For paragraph 52ZZL(2)(e) of the Act, if the amount of the distribution exceeds the additional ordinary income that the individual is taken to receive in accordance with subsection 52ZZK(1) of the Act during the attribution period, the Commission must consider determining that the ordinary income of the individual received during that period does not include so much of the amount of the distribution that equals the additional ordinary income that the individual is taken to receive in accordance with subsection 52ZZK(1) of the Act.\n\n  \n\n# Part 4 Determination of derivation period (Act, s 52ZZP)\n\n### 19 Derivation period must reflect typical income\n\n(1) This section applies to the determination of a specified period as the derivation period of a specified company or trust in relation to an attributable stakeholder of the company or trust.\n\n(2) The derivation period must be a period that is determined having regard to the following matters:\n\n(a) the ordinary income of the company or trust for a derivation period referred to in subsection 52ZZP(1) of the Act;\n\n(b) the ordinary income of the company or trust for any other period or periods that may reasonably be regarded as typical earning periods for the company or trust;\n\n(c) any circumstances affecting the company or trust during the periods referred to in paragraphs (a) and (b);\n\n(d) whether, having regard to any circumstances referred to in paragraph (c), it is appropriate to use a derivation period different from the derivation period referred to in subsection 52ZZP(1) of the Act.\n\n  \n\n# Part 5 Determination of attribution period (Act, s 52ZZQ)\n\n### 20 Attribution period must reflect typical circumstances\n\n(1) This section applies to the determination of an attribution period in relation to:\n\n(a) a specified individual who is an attributable stakeholder of a specified company or trust; and\n\n(b) a specified derivation period of the company or trust.\n\n(2) The attribution period must be a period that is determined having regard to the following matters:\n\n(a) the ordinary income of the attributable stakeholder for the derivation period;\n\n(b) the ordinary income of the attributable stakeholder for any other period or periods that may reasonably be regarded as typical earning periods for the attributable stakeholder;\n\n(c) any circumstances affecting the attributable stakeholder during the periods referred to in paragraphs (a) and (b);\n\n(d) any circumstances that may reasonably be regarded as likely to affect the ordinary income of the attributable stakeholder.","sortOrder":13},{"sectionNumber":"9","sectionType":"division","heading":"Distribution made to partner who is not attributable stakeholder","content":"### 9 Distribution made to partner who is not attributable stakeholder\n\n(1) This section applies if, in respect of an individual, the following circumstances exist:\n\n(a) the individual is a member of a couple;\n\n(b) the individual is an attributable stakeholder of a company or trust, but the individual’s partner is not an attributable stakeholder of the company or trust;\n\n(c) during a derivation period of the company or trust, the individual:\n\n(i) may, or may not, receive a distribution from the company or trust; but\n\n(ii) is taken to receive an amount of attributable income during the attribution period that relates to the derivation period;\n\n(d) during the derivation period mentioned in paragraph (c), the individual’s partner receives a distribution from the company or trust.\n\n(2) The Commission must consider determining that an amount equal to the amount of the distribution received by the partner is excluded income in relation to the attributable stakeholder.","sortOrder":14},{"sectionNumber":"Division 2.3 Investor makes genuine tran","sectionType":"part","heading":"Division 2.3 Investor makes genuine transfer and receives distribution or credit","content":"# Part 1 Preliminary\n\n### 1 Name\n\nThis instrument is the Veterans’ Entitlements (Attribution of Income) Principles 2025.\n\n### 2 Commencement\n\nThis instrument commences on the day after the day it is registered.\n\n### 3 Authority\n\nThis instrument is made under section 52ZZZQ of the Veterans’ Entitlements Act 1986.\n\n### 3A Repeal\n\nSchedule 4 to the Veterans’ Affairs (Legislative Instrument Re-making Exercise) Instrument 2014 is repealed.\n\n### 4 Definitions\n\n> Note: A number of expressions used in this instrument are defined in the Act, including the following:\n\n    (a) attributable stakeholder – of a company or trust (see section 52ZZJ);\n    (b) Commission (see section 5Q);\n    (c) company (see section 52ZO);\n    (d) member of a couple (see section 5E);\n    (e) partner (see section 5E);\n    (f) trust (see section 52ZO of the Act).\n  In this instrument, unless the contrary intention appears:\n\n> Act means the Veterans’ Entitlements Act 1986.\n\n> attributable income, in relation to an individual who is an attributable stakeholder of a company or trust, means income that the individual is taken to receive during an attribution period of the company or trust.\n\n> distribution, in relation to a trust, includes an amount credited by a trust to a beneficiary of the trust.\n\n### 4A Purpose\n\n  This instrument sets out decision-making principles with which the Commission must comply in making the following determinations:\n\n(a) a determination under subsection 52ZZK(2) of the Act that, for the purposes of the application of subsection 52ZZK(1) of the Act to a specified individual and a specified company or trust, a specified amount is excluded income;\n\n(b) a determination under section 52ZZL of the Act that the ordinary income of an individual does not include the amount or value of a distribution, or a part of the amount or value of a distribution, to the individual by a company or trust;\n\n(c) a determination under section 52ZZP(3) of the Act that a specified period is a derivation period of a company or trust for the purposes of the application of Subdivision G of Division 11A of Part IIIB of the Act to a specified individual and to a specified company or trust;\n\n(d) a determination under section 52ZZQ(1) of the Act that a specified period is an attribution period for the purposes of the application of Division 11A of Part IIIB of the Act to a specified individual and to a specified company or trust.\n\n  \n\n# Part 2 Determination about excluded income (Act, s 52ZZK)\n\n## Division 2.1 No double counting—both members of couple are attributable stakeholders of company or trust\n\n### 5 Application of Division 2.1\n\n  This Division applies if, in respect of an individual, the following circumstances exist:\n\n(a) the individual is a member of a couple;\n\n(b) the individual and the individual’s partner are attributable stakeholders of a company or trust;\n\n(c) during a derivation period of the company or trust, the individual:\n\n(i) may, or may not, receive a distribution from the company or trust; but\n\n(ii) is taken to receive an amount of attributable income during the attribution period that relates to the derivation period;\n\n(d) during the derivation period mentioned in paragraph (c), the individual’s partner:\n\n(i) receives a distribution from the company or trust; and\n\n(ii) is taken to receive an amount of attributable income during the attribution period that relates to the derivation period.\n\n### 6 Sum of distributions is the same as sum of attributable income\n\n  (1) This section applies if:\n\n(a) the sum of the distributions mentioned in subparagraphs 5(c)(i) (if any) and 5(d)(i) is the same as the sum of the attributable income mentioned in subparagraphs 5(c)(ii) and 5(d)(ii); but\n\n(b) the amount of the distribution mentioned in subparagraph 5(d)(i) is greater than the amount of attributable income mentioned in subparagraph 5 (d)(ii).\n\n  (2) The Commission must consider determining that the difference between the amounts referred to in paragraph (1)(b) is excluded income in relation to the attributable income of the individual mentioned in paragraph 5(c).\n\n### 7 Sum of distributions is less than sum of attributable income\n\n(1) This section applies if:\n\n(a) the sum of the distributions mentioned in subparagraphs 5 (c)(i) (if any) and 5(d)(i) is less than the sum of the attributable income mentioned in subparagraphs 5(c)(ii) and 5(d)(ii); but\n\n(b) the amount of the distribution mentioned in subparagraph 5(d)(i) is greater than the amount of attributable income mentioned in subparagraph 5(d)(ii).\n\n(2) The Commission must consider determining that the difference between the amounts referred to in paragraph (1)(b) is excluded income in relation to the attributable income of the individual mentioned in paragraph 5(c).\n\n### 8 Sum of distributions is greater than sum of attributable income\n\n(1) This section applies if:\n\n(a) the sum of the distributions mentioned in subparagraphs 5(c)(i) (if any) and 5(d)(i) is greater than the sum of the attributable income mentioned in subparagraphs 5(c)(ii) and 5(d)(ii); but\n\n(b) the amount of the distribution mentioned in subparagraph 5(c)(i) (if any) is less than the amount of attributable income mentioned in subparagraph 5(c)(ii).\n\n(2) The Commission must consider determining that the difference between the amounts referred to in paragraph (1)(b) is excluded income in relation to the attributable income of the individual mentioned in paragraph 5(c).\n\n## Division 2.2 No double counting—one member of couple is not attributable stakeholder\n\n### 9 Distribution made to partner who is not attributable stakeholder\n\n(1) This section applies if, in respect of an individual, the following circumstances exist:\n\n(a) the individual is a member of a couple;\n\n(b) the individual is an attributable stakeholder of a company or trust, but the individual’s partner is not an attributable stakeholder of the company or trust;\n\n(c) during a derivation period of the company or trust, the individual:\n\n(i) may, or may not, receive a distribution from the company or trust; but\n\n(ii) is taken to receive an amount of attributable income during the attribution period that relates to the derivation period;\n\n(d) during the derivation period mentioned in paragraph (c), the individual’s partner receives a distribution from the company or trust.\n\n(2) The Commission must consider determining that an amount equal to the amount of the distribution received by the partner is excluded income in relation to the attributable stakeholder.\n\n## Division 2.3 Investor makes genuine transfer and receives distribution or credit\n\n### 10 Application of Division 2.3\n\nThis Division applies if:\n\n(a) an individual (the investor) makes a genuine transfer of capital to a company or trust of which the investor is not an attributable stakeholder; and\n\n(b) during a derivation period of the company or trust, the investor receives a distribution from the company or trust.\n\n### 11 Genuine transfer of capital\n\nFor section 10, a transfer of capital is a genuine transfer of capital if:\n\n(a) the investor receives, as consideration for the transfer, shares in the company, or units in the trust, of a value that is equivalent to the value of the capital transferred; and\n\n(b) the investor has a legal or equitable right to a share of the capital of the company or trust; and\n\n(c) the investor has a legal or equitable right to receive dividends or distributions in accordance with the constituent documents of the company or the terms of the trust; and\n\n(d) the investor is over 18 years of age.\n\n### 12 Excluded income\n\n(1) This section applies if:\n\n(a) an individual who is an attributable stakeholder of a company or trust is taken to receive attributable income in accordance with subsection 52ZZK(1) of the Act; and\n\n(b) the attributable income of the individual is taken to include additional ordinary income in the circumstances mentioned in section 10.\n\n(2) The Commission must consider determining that the amount of additional ordinary income worked out in accordance with subsection (3) is excluded income in relation to the attributable stakeholder.\n\n(3) The amount of excluded income is worked out by multiplying the amount of the distribution mentioned in paragraph 10(b) by the income attribution percentage of the attributable stakeholder.\n\n  \n\n# Part 3 Determination about excluded income (Act, s 52ZZL)\n\n## Division 3.1 No double counting of attributed income—general\n\n### 13 No double counting of attributed income—general\n\n(1) For paragraphs 52ZZL(1)(d) and (e) and (2)(d) and (e) of the Act, the Commission must have regard to the ordinary income of the individual received during the relevant attribution period and consider if the individual is an attributable stakeholder of:\n\n(a) more than 1 controlled private company; or\n\n(b) more than 1 controlled private trust; or\n\n(c) at least 1 controlled private company and 1 controlled private trust.\n\n(2) For paragraphs 52ZZL(1)(d) and (e) and (2)(d) and (e) of the Act, the Commission must also consider if a company or trust mentioned in subsection (1) has derived an amount, directly or indirectly, by way of dividend or other distribution from another controlled private company or controlled private trust.\n\n### 14 No double counting if ordinary income significantly diminished\n\n(1) This section applies if:\n\n(a) a company or trust makes a distribution to an individual who is an attributable stakeholder of the company or trust; and\n\n(b) the individual would, but for this section, be taken to receive an amount of ordinary income over a period of 12 months in accordance with section 46A of the Act; and\n\n(c) the ordinary income of the individual derived from the company or trust during an attribution period has ceased, or is significantly diminished, because the company or trust:\n\n(i) has been wound-up or otherwise ceased to exist; or\n\n(ii) has been subject to circumstances adversely affecting its profitability.\n\n(2) For paragraphs 52ZZL(1)(d) and (e) and (2)(d) and (e) of the Act, the Commission must consider:\n\n(a) whether, in all the circumstances, the application of section 46A of the Act would be unfair or unreasonable in relation to the individual; and\n\n(b) if section 46A applies unfairly or unreasonably in relation to the individual, determining that the ordinary income of the individual does not include the whole or part of the amount or value distributed to the individual.\n\n## Division 3.2 Distributions by companies\n\n### 15 No double counting of attributed income—distribution by company to all attributable stakeholders\n\n(1) This section applies if:\n\n(a) during a particular derivation period of a company, an individual receives a distribution of capital from the company (the distribution); and\n\n(b) the individual is an attributable stakeholder of the company during an attribution period that corresponds with the derivation period of the company; and\n\n(c) the distribution made to the attributable stakeholder is part of a distribution to all attributable stakeholders of the company (the total distribution); and\n\n(d) the proportion that the distribution to each attributable stakeholder bears to the total distribution, expressed as a percentage, is the same as each attributable stakeholder’s asset attribution percentage in relation to the company.\n\n(2) For paragraph 52ZZL(1)(d) of the Act, the Commission must consider determining that the ordinary income of the individual received during the attribution period does not include the distribution if, but for this section, the amount or value of the distribution would be included in the ordinary income of the individual for that period.\n\n(3) For paragraph 52ZZL(1)(e) of the Act, the Commission must consider determining that the ordinary income of the individual received during the attribution period does not include any part of the amount or value of the distribution if, but for this section, any part of the amount or value of the distribution would be included in the ordinary income of the individual for that period.\n\n### 16 No double counting of attributed income—other distributions by a company\n\n(1) This section applies if:\n\n(a) during a particular derivation period of a company, an individual receives a distribution of capital or profits from the company (the distribution); and\n\n(b) the individual is an attributable stakeholder of the company during an attribution period that corresponds with the derivation period of the company; and\n\n(c) the distribution is made in circumstances other than those mentioned in section 14 and paragraphs 15(1)(c) and (d); and\n\n(d) the individual is taken to receive additional ordinary income during that attribution period in accordance with subsection 52ZZK(1) of the Act.\n\n(2) For paragraph 52ZZL(1)(d) of the Act, if the amount of the distribution is less than, or equal to, the additional ordinary income that the individual is taken to receive in accordance with subsection 52ZZK(1) of the Act during the attribution period, the Commission must consider determining that the ordinary income of the individual received during that period does not include the amount of that distribution.\n\n(3) For paragraph 52ZZL(1)(e) of the Act, if the amount of the distribution exceeds the additional ordinary income that the individual is taken to receive in accordance with subsection 52ZZK(1) of the Act during the attribution period, the Commission must consider determining that the ordinary income of the individual received during that period does not include so much of the amount of the distribution that equals the additional ordinary income that the individual is taken to receive in accordance with subsection 52ZZK(1) of the Act.\n\n## Division 3.3 Distributions by trusts\n\n### 17 No double counting of attributed income—distribution by trust to all attributable stakeholders\n\n(1) This section applies if:\n\n(a) during a particular derivation period of a trust, an individual receives a distribution of corpus from the trust (the distribution); and\n\n(b) the individual is an attributable stakeholder of the trust during an attribution period that corresponds with the derivation period of the trust; and\n\n(c) the distribution made to the attributable stakeholder is part of a distribution to all attributable stakeholders of the trust (the total distribution); and\n\n(d) the proportion that the distribution to each attributable stakeholder bears to the total distribution, expressed as a percentage, is the same as the attributable stakeholder’s asset attribution percentage in relation to the trust.\n\n(2) For paragraph 52ZZL(2)(d) of the Act, the Commission must consider determining that the ordinary income of the individual received during the attribution period does not include the amount or value of the distribution if, but for this section, the distribution would be included in the ordinary income of the individual for that period.\n\n(3) For paragraph 52ZZL(2)(e) of the Act, the Commission must consider determining that the ordinary income of the individual received during the attribution period does not include any part of the amount or value of the distribution if, but for this section, any part of the amount or value of the distribution would be included in the ordinary income of the individual for that period.\n\n### 18 No double counting of attributed income—other distributions by trust\n\n(1) This section applies if:\n\n(a) during a particular derivation period of a trust, an individual receives a distribution of corpus or income from the trust (the distribution); and\n\n(b) the individual is an attributable stakeholder of the trust during an attribution period that corresponds with the derivation period of the trust; and\n\n(c) the distribution is made in circumstances other than those mentioned in section 14 and paragraphs 17(1)(c) and (d); and\n\n(d) the individual is taken to receive additional ordinary income, during that attribution period, in accordance with subsection 52ZZK(1) of the Act.\n\n(2) For paragraph 52ZZL(2)(d) of the Act, if the amount of the distribution is less than, or equal to, the additional ordinary income that the individual is taken to receive in accordance with subsection 52ZZK(1) of the Act during the attribution period, the Commission must consider determining that the ordinary income of the individual received during that period does not include the amount of that distribution.\n\n(3) For paragraph 52ZZL(2)(e) of the Act, if the amount of the distribution exceeds the additional ordinary income that the individual is taken to receive in accordance with subsection 52ZZK(1) of the Act during the attribution period, the Commission must consider determining that the ordinary income of the individual received during that period does not include so much of the amount of the distribution that equals the additional ordinary income that the individual is taken to receive in accordance with subsection 52ZZK(1) of the Act.\n\n  \n\n# Part 4 Determination of derivation period (Act, s 52ZZP)\n\n### 19 Derivation period must reflect typical income\n\n(1) This section applies to the determination of a specified period as the derivation period of a specified company or trust in relation to an attributable stakeholder of the company or trust.\n\n(2) The derivation period must be a period that is determined having regard to the following matters:\n\n(a) the ordinary income of the company or trust for a derivation period referred to in subsection 52ZZP(1) of the Act;\n\n(b) the ordinary income of the company or trust for any other period or periods that may reasonably be regarded as typical earning periods for the company or trust;\n\n(c) any circumstances affecting the company or trust during the periods referred to in paragraphs (a) and (b);\n\n(d) whether, having regard to any circumstances referred to in paragraph (c), it is appropriate to use a derivation period different from the derivation period referred to in subsection 52ZZP(1) of the Act.\n\n  \n\n# Part 5 Determination of attribution period (Act, s 52ZZQ)\n\n### 20 Attribution period must reflect typical circumstances\n\n(1) This section applies to the determination of an attribution period in relation to:\n\n(a) a specified individual who is an attributable stakeholder of a specified company or trust; and\n\n(b) a specified derivation period of the company or trust.\n\n(2) The attribution period must be a period that is determined having regard to the following matters:\n\n(a) the ordinary income of the attributable stakeholder for the derivation period;\n\n(b) the ordinary income of the attributable stakeholder for any other period or periods that may reasonably be regarded as typical earning periods for the attributable stakeholder;\n\n(c) any circumstances affecting the attributable stakeholder during the periods referred to in paragraphs (a) and (b);\n\n(d) any circumstances that may reasonably be regarded as likely to affect the ordinary income of the attributable stakeholder.","sortOrder":15},{"sectionNumber":"10","sectionType":"division","heading":"Application of Division 2.3","content":"### 10 Application of Division 2.3\n\nThis Division applies if:\n\n(a) an individual (the investor) makes a genuine transfer of capital to a company or trust of which the investor is not an attributable stakeholder; and\n\n(b) during a derivation period of the company or trust, the investor receives a distribution from the company or trust.","sortOrder":16},{"sectionNumber":"11","sectionType":"division","heading":"Genuine transfer of capital","content":"### 11 Genuine transfer of capital\n\nFor section 10, a transfer of capital is a genuine transfer of capital if:\n\n(a) the investor receives, as consideration for the transfer, shares in the company, or units in the trust, of a value that is equivalent to the value of the capital transferred; and\n\n(b) the investor has a legal or equitable right to a share of the capital of the company or trust; and\n\n(c) the investor has a legal or equitable right to receive dividends or distributions in accordance with the constituent documents of the company or the terms of the trust; and\n\n(d) the investor is over 18 years of age.","sortOrder":17},{"sectionNumber":"12","sectionType":"division","heading":"Excluded income","content":"### 12 Excluded income\n\n(1) This section applies if:\n\n(a) an individual who is an attributable stakeholder of a company or trust is taken to receive attributable income in accordance with subsection 52ZZK(1) of the Act; and\n\n(b) the attributable income of the individual is taken to include additional ordinary income in the circumstances mentioned in section 10.\n\n(2) The Commission must consider determining that the amount of additional ordinary income worked out in accordance with subsection (3) is excluded income in relation to the attributable stakeholder.\n\n(3) The amount of excluded income is worked out by multiplying the amount of the distribution mentioned in paragraph 10(b) by the income attribution percentage of the attributable stakeholder.","sortOrder":18},{"sectionNumber":"Part 3","sectionType":"part","heading":"Determination about excluded income (Act, s 52ZZL)","content":"# Part 1 Preliminary\n\n### 1 Name\n\nThis instrument is the Veterans’ Entitlements (Attribution of Income) Principles 2025.\n\n### 2 Commencement\n\nThis instrument commences on the day after the day it is registered.\n\n### 3 Authority\n\nThis instrument is made under section 52ZZZQ of the Veterans’ Entitlements Act 1986.\n\n### 3A Repeal\n\nSchedule 4 to the Veterans’ Affairs (Legislative Instrument Re-making Exercise) Instrument 2014 is repealed.\n\n### 4 Definitions\n\n> Note: A number of expressions used in this instrument are defined in the Act, including the following:\n\n    (a) attributable stakeholder – of a company or trust (see section 52ZZJ);\n    (b) Commission (see section 5Q);\n    (c) company (see section 52ZO);\n    (d) member of a couple (see section 5E);\n    (e) partner (see section 5E);\n    (f) trust (see section 52ZO of the Act).\n  In this instrument, unless the contrary intention appears:\n\n> Act means the Veterans’ Entitlements Act 1986.\n\n> attributable income, in relation to an individual who is an attributable stakeholder of a company or trust, means income that the individual is taken to receive during an attribution period of the company or trust.\n\n> distribution, in relation to a trust, includes an amount credited by a trust to a beneficiary of the trust.\n\n### 4A Purpose\n\n  This instrument sets out decision-making principles with which the Commission must comply in making the following determinations:\n\n(a) a determination under subsection 52ZZK(2) of the Act that, for the purposes of the application of subsection 52ZZK(1) of the Act to a specified individual and a specified company or trust, a specified amount is excluded income;\n\n(b) a determination under section 52ZZL of the Act that the ordinary income of an individual does not include the amount or value of a distribution, or a part of the amount or value of a distribution, to the individual by a company or trust;\n\n(c) a determination under section 52ZZP(3) of the Act that a specified period is a derivation period of a company or trust for the purposes of the application of Subdivision G of Division 11A of Part IIIB of the Act to a specified individual and to a specified company or trust;\n\n(d) a determination under section 52ZZQ(1) of the Act that a specified period is an attribution period for the purposes of the application of Division 11A of Part IIIB of the Act to a specified individual and to a specified company or trust.\n\n  \n\n# Part 2 Determination about excluded income (Act, s 52ZZK)\n\n## Division 2.1 No double counting—both members of couple are attributable stakeholders of company or trust\n\n### 5 Application of Division 2.1\n\n  This Division applies if, in respect of an individual, the following circumstances exist:\n\n(a) the individual is a member of a couple;\n\n(b) the individual and the individual’s partner are attributable stakeholders of a company or trust;\n\n(c) during a derivation period of the company or trust, the individual:\n\n(i) may, or may not, receive a distribution from the company or trust; but\n\n(ii) is taken to receive an amount of attributable income during the attribution period that relates to the derivation period;\n\n(d) during the derivation period mentioned in paragraph (c), the individual’s partner:\n\n(i) receives a distribution from the company or trust; and\n\n(ii) is taken to receive an amount of attributable income during the attribution period that relates to the derivation period.\n\n### 6 Sum of distributions is the same as sum of attributable income\n\n  (1) This section applies if:\n\n(a) the sum of the distributions mentioned in subparagraphs 5(c)(i) (if any) and 5(d)(i) is the same as the sum of the attributable income mentioned in subparagraphs 5(c)(ii) and 5(d)(ii); but\n\n(b) the amount of the distribution mentioned in subparagraph 5(d)(i) is greater than the amount of attributable income mentioned in subparagraph 5 (d)(ii).\n\n  (2) The Commission must consider determining that the difference between the amounts referred to in paragraph (1)(b) is excluded income in relation to the attributable income of the individual mentioned in paragraph 5(c).\n\n### 7 Sum of distributions is less than sum of attributable income\n\n(1) This section applies if:\n\n(a) the sum of the distributions mentioned in subparagraphs 5 (c)(i) (if any) and 5(d)(i) is less than the sum of the attributable income mentioned in subparagraphs 5(c)(ii) and 5(d)(ii); but\n\n(b) the amount of the distribution mentioned in subparagraph 5(d)(i) is greater than the amount of attributable income mentioned in subparagraph 5(d)(ii).\n\n(2) The Commission must consider determining that the difference between the amounts referred to in paragraph (1)(b) is excluded income in relation to the attributable income of the individual mentioned in paragraph 5(c).\n\n### 8 Sum of distributions is greater than sum of attributable income\n\n(1) This section applies if:\n\n(a) the sum of the distributions mentioned in subparagraphs 5(c)(i) (if any) and 5(d)(i) is greater than the sum of the attributable income mentioned in subparagraphs 5(c)(ii) and 5(d)(ii); but\n\n(b) the amount of the distribution mentioned in subparagraph 5(c)(i) (if any) is less than the amount of attributable income mentioned in subparagraph 5(c)(ii).\n\n(2) The Commission must consider determining that the difference between the amounts referred to in paragraph (1)(b) is excluded income in relation to the attributable income of the individual mentioned in paragraph 5(c).\n\n## Division 2.2 No double counting—one member of couple is not attributable stakeholder\n\n### 9 Distribution made to partner who is not attributable stakeholder\n\n(1) This section applies if, in respect of an individual, the following circumstances exist:\n\n(a) the individual is a member of a couple;\n\n(b) the individual is an attributable stakeholder of a company or trust, but the individual’s partner is not an attributable stakeholder of the company or trust;\n\n(c) during a derivation period of the company or trust, the individual:\n\n(i) may, or may not, receive a distribution from the company or trust; but\n\n(ii) is taken to receive an amount of attributable income during the attribution period that relates to the derivation period;\n\n(d) during the derivation period mentioned in paragraph (c), the individual’s partner receives a distribution from the company or trust.\n\n(2) The Commission must consider determining that an amount equal to the amount of the distribution received by the partner is excluded income in relation to the attributable stakeholder.\n\n## Division 2.3 Investor makes genuine transfer and receives distribution or credit\n\n### 10 Application of Division 2.3\n\nThis Division applies if:\n\n(a) an individual (the investor) makes a genuine transfer of capital to a company or trust of which the investor is not an attributable stakeholder; and\n\n(b) during a derivation period of the company or trust, the investor receives a distribution from the company or trust.\n\n### 11 Genuine transfer of capital\n\nFor section 10, a transfer of capital is a genuine transfer of capital if:\n\n(a) the investor receives, as consideration for the transfer, shares in the company, or units in the trust, of a value that is equivalent to the value of the capital transferred; and\n\n(b) the investor has a legal or equitable right to a share of the capital of the company or trust; and\n\n(c) the investor has a legal or equitable right to receive dividends or distributions in accordance with the constituent documents of the company or the terms of the trust; and\n\n(d) the investor is over 18 years of age.\n\n### 12 Excluded income\n\n(1) This section applies if:\n\n(a) an individual who is an attributable stakeholder of a company or trust is taken to receive attributable income in accordance with subsection 52ZZK(1) of the Act; and\n\n(b) the attributable income of the individual is taken to include additional ordinary income in the circumstances mentioned in section 10.\n\n(2) The Commission must consider determining that the amount of additional ordinary income worked out in accordance with subsection (3) is excluded income in relation to the attributable stakeholder.\n\n(3) The amount of excluded income is worked out by multiplying the amount of the distribution mentioned in paragraph 10(b) by the income attribution percentage of the attributable stakeholder.\n\n  \n\n# Part 3 Determination about excluded income (Act, s 52ZZL)\n\n## Division 3.1 No double counting of attributed income—general\n\n### 13 No double counting of attributed income—general\n\n(1) For paragraphs 52ZZL(1)(d) and (e) and (2)(d) and (e) of the Act, the Commission must have regard to the ordinary income of the individual received during the relevant attribution period and consider if the individual is an attributable stakeholder of:\n\n(a) more than 1 controlled private company; or\n\n(b) more than 1 controlled private trust; or\n\n(c) at least 1 controlled private company and 1 controlled private trust.\n\n(2) For paragraphs 52ZZL(1)(d) and (e) and (2)(d) and (e) of the Act, the Commission must also consider if a company or trust mentioned in subsection (1) has derived an amount, directly or indirectly, by way of dividend or other distribution from another controlled private company or controlled private trust.\n\n### 14 No double counting if ordinary income significantly diminished\n\n(1) This section applies if:\n\n(a) a company or trust makes a distribution to an individual who is an attributable stakeholder of the company or trust; and\n\n(b) the individual would, but for this section, be taken to receive an amount of ordinary income over a period of 12 months in accordance with section 46A of the Act; and\n\n(c) the ordinary income of the individual derived from the company or trust during an attribution period has ceased, or is significantly diminished, because the company or trust:\n\n(i) has been wound-up or otherwise ceased to exist; or\n\n(ii) has been subject to circumstances adversely affecting its profitability.\n\n(2) For paragraphs 52ZZL(1)(d) and (e) and (2)(d) and (e) of the Act, the Commission must consider:\n\n(a) whether, in all the circumstances, the application of section 46A of the Act would be unfair or unreasonable in relation to the individual; and\n\n(b) if section 46A applies unfairly or unreasonably in relation to the individual, determining that the ordinary income of the individual does not include the whole or part of the amount or value distributed to the individual.\n\n## Division 3.2 Distributions by companies\n\n### 15 No double counting of attributed income—distribution by company to all attributable stakeholders\n\n(1) This section applies if:\n\n(a) during a particular derivation period of a company, an individual receives a distribution of capital from the company (the distribution); and\n\n(b) the individual is an attributable stakeholder of the company during an attribution period that corresponds with the derivation period of the company; and\n\n(c) the distribution made to the attributable stakeholder is part of a distribution to all attributable stakeholders of the company (the total distribution); and\n\n(d) the proportion that the distribution to each attributable stakeholder bears to the total distribution, expressed as a percentage, is the same as each attributable stakeholder’s asset attribution percentage in relation to the company.\n\n(2) For paragraph 52ZZL(1)(d) of the Act, the Commission must consider determining that the ordinary income of the individual received during the attribution period does not include the distribution if, but for this section, the amount or value of the distribution would be included in the ordinary income of the individual for that period.\n\n(3) For paragraph 52ZZL(1)(e) of the Act, the Commission must consider determining that the ordinary income of the individual received during the attribution period does not include any part of the amount or value of the distribution if, but for this section, any part of the amount or value of the distribution would be included in the ordinary income of the individual for that period.\n\n### 16 No double counting of attributed income—other distributions by a company\n\n(1) This section applies if:\n\n(a) during a particular derivation period of a company, an individual receives a distribution of capital or profits from the company (the distribution); and\n\n(b) the individual is an attributable stakeholder of the company during an attribution period that corresponds with the derivation period of the company; and\n\n(c) the distribution is made in circumstances other than those mentioned in section 14 and paragraphs 15(1)(c) and (d); and\n\n(d) the individual is taken to receive additional ordinary income during that attribution period in accordance with subsection 52ZZK(1) of the Act.\n\n(2) For paragraph 52ZZL(1)(d) of the Act, if the amount of the distribution is less than, or equal to, the additional ordinary income that the individual is taken to receive in accordance with subsection 52ZZK(1) of the Act during the attribution period, the Commission must consider determining that the ordinary income of the individual received during that period does not include the amount of that distribution.\n\n(3) For paragraph 52ZZL(1)(e) of the Act, if the amount of the distribution exceeds the additional ordinary income that the individual is taken to receive in accordance with subsection 52ZZK(1) of the Act during the attribution period, the Commission must consider determining that the ordinary income of the individual received during that period does not include so much of the amount of the distribution that equals the additional ordinary income that the individual is taken to receive in accordance with subsection 52ZZK(1) of the Act.\n\n## Division 3.3 Distributions by trusts\n\n### 17 No double counting of attributed income—distribution by trust to all attributable stakeholders\n\n(1) This section applies if:\n\n(a) during a particular derivation period of a trust, an individual receives a distribution of corpus from the trust (the distribution); and\n\n(b) the individual is an attributable stakeholder of the trust during an attribution period that corresponds with the derivation period of the trust; and\n\n(c) the distribution made to the attributable stakeholder is part of a distribution to all attributable stakeholders of the trust (the total distribution); and\n\n(d) the proportion that the distribution to each attributable stakeholder bears to the total distribution, expressed as a percentage, is the same as the attributable stakeholder’s asset attribution percentage in relation to the trust.\n\n(2) For paragraph 52ZZL(2)(d) of the Act, the Commission must consider determining that the ordinary income of the individual received during the attribution period does not include the amount or value of the distribution if, but for this section, the distribution would be included in the ordinary income of the individual for that period.\n\n(3) For paragraph 52ZZL(2)(e) of the Act, the Commission must consider determining that the ordinary income of the individual received during the attribution period does not include any part of the amount or value of the distribution if, but for this section, any part of the amount or value of the distribution would be included in the ordinary income of the individual for that period.\n\n### 18 No double counting of attributed income—other distributions by trust\n\n(1) This section applies if:\n\n(a) during a particular derivation period of a trust, an individual receives a distribution of corpus or income from the trust (the distribution); and\n\n(b) the individual is an attributable stakeholder of the trust during an attribution period that corresponds with the derivation period of the trust; and\n\n(c) the distribution is made in circumstances other than those mentioned in section 14 and paragraphs 17(1)(c) and (d); and\n\n(d) the individual is taken to receive additional ordinary income, during that attribution period, in accordance with subsection 52ZZK(1) of the Act.\n\n(2) For paragraph 52ZZL(2)(d) of the Act, if the amount of the distribution is less than, or equal to, the additional ordinary income that the individual is taken to receive in accordance with subsection 52ZZK(1) of the Act during the attribution period, the Commission must consider determining that the ordinary income of the individual received during that period does not include the amount of that distribution.\n\n(3) For paragraph 52ZZL(2)(e) of the Act, if the amount of the distribution exceeds the additional ordinary income that the individual is taken to receive in accordance with subsection 52ZZK(1) of the Act during the attribution period, the Commission must consider determining that the ordinary income of the individual received during that period does not include so much of the amount of the distribution that equals the additional ordinary income that the individual is taken to receive in accordance with subsection 52ZZK(1) of the Act.\n\n  \n\n# Part 4 Determination of derivation period (Act, s 52ZZP)\n\n### 19 Derivation period must reflect typical income\n\n(1) This section applies to the determination of a specified period as the derivation period of a specified company or trust in relation to an attributable stakeholder of the company or trust.\n\n(2) The derivation period must be a period that is determined having regard to the following matters:\n\n(a) the ordinary income of the company or trust for a derivation period referred to in subsection 52ZZP(1) of the Act;\n\n(b) the ordinary income of the company or trust for any other period or periods that may reasonably be regarded as typical earning periods for the company or trust;\n\n(c) any circumstances affecting the company or trust during the periods referred to in paragraphs (a) and (b);\n\n(d) whether, having regard to any circumstances referred to in paragraph (c), it is appropriate to use a derivation period different from the derivation period referred to in subsection 52ZZP(1) of the Act.\n\n  \n\n# Part 5 Determination of attribution period (Act, s 52ZZQ)\n\n### 20 Attribution period must reflect typical circumstances\n\n(1) This section applies to the determination of an attribution period in relation to:\n\n(a) a specified individual who is an attributable stakeholder of a specified company or trust; and\n\n(b) a specified derivation period of the company or trust.\n\n(2) The attribution period must be a period that is determined having regard to the following matters:\n\n(a) the ordinary income of the attributable stakeholder for the derivation period;\n\n(b) the ordinary income of the attributable stakeholder for any other period or periods that may reasonably be regarded as typical earning periods for the attributable stakeholder;\n\n(c) any circumstances affecting the attributable stakeholder during the periods referred to in paragraphs (a) and (b);\n\n(d) any circumstances that may reasonably be regarded as likely to affect the ordinary income of the attributable stakeholder.","sortOrder":19},{"sectionNumber":"Division 3.1 No double counting of attri","sectionType":"part","heading":"Division 3.1 No double counting of attributed income—general","content":"# Part 1 Preliminary\n\n### 1 Name\n\nThis instrument is the Veterans’ Entitlements (Attribution of Income) Principles 2025.\n\n### 2 Commencement\n\nThis instrument commences on the day after the day it is registered.\n\n### 3 Authority\n\nThis instrument is made under section 52ZZZQ of the Veterans’ Entitlements Act 1986.\n\n### 3A Repeal\n\nSchedule 4 to the Veterans’ Affairs (Legislative Instrument Re-making Exercise) Instrument 2014 is repealed.\n\n### 4 Definitions\n\n> Note: A number of expressions used in this instrument are defined in the Act, including the following:\n\n    (a) attributable stakeholder – of a company or trust (see section 52ZZJ);\n    (b) Commission (see section 5Q);\n    (c) company (see section 52ZO);\n    (d) member of a couple (see section 5E);\n    (e) partner (see section 5E);\n    (f) trust (see section 52ZO of the Act).\n  In this instrument, unless the contrary intention appears:\n\n> Act means the Veterans’ Entitlements Act 1986.\n\n> attributable income, in relation to an individual who is an attributable stakeholder of a company or trust, means income that the individual is taken to receive during an attribution period of the company or trust.\n\n> distribution, in relation to a trust, includes an amount credited by a trust to a beneficiary of the trust.\n\n### 4A Purpose\n\n  This instrument sets out decision-making principles with which the Commission must comply in making the following determinations:\n\n(a) a determination under subsection 52ZZK(2) of the Act that, for the purposes of the application of subsection 52ZZK(1) of the Act to a specified individual and a specified company or trust, a specified amount is excluded income;\n\n(b) a determination under section 52ZZL of the Act that the ordinary income of an individual does not include the amount or value of a distribution, or a part of the amount or value of a distribution, to the individual by a company or trust;\n\n(c) a determination under section 52ZZP(3) of the Act that a specified period is a derivation period of a company or trust for the purposes of the application of Subdivision G of Division 11A of Part IIIB of the Act to a specified individual and to a specified company or trust;\n\n(d) a determination under section 52ZZQ(1) of the Act that a specified period is an attribution period for the purposes of the application of Division 11A of Part IIIB of the Act to a specified individual and to a specified company or trust.\n\n  \n\n# Part 2 Determination about excluded income (Act, s 52ZZK)\n\n## Division 2.1 No double counting—both members of couple are attributable stakeholders of company or trust\n\n### 5 Application of Division 2.1\n\n  This Division applies if, in respect of an individual, the following circumstances exist:\n\n(a) the individual is a member of a couple;\n\n(b) the individual and the individual’s partner are attributable stakeholders of a company or trust;\n\n(c) during a derivation period of the company or trust, the individual:\n\n(i) may, or may not, receive a distribution from the company or trust; but\n\n(ii) is taken to receive an amount of attributable income during the attribution period that relates to the derivation period;\n\n(d) during the derivation period mentioned in paragraph (c), the individual’s partner:\n\n(i) receives a distribution from the company or trust; and\n\n(ii) is taken to receive an amount of attributable income during the attribution period that relates to the derivation period.\n\n### 6 Sum of distributions is the same as sum of attributable income\n\n  (1) This section applies if:\n\n(a) the sum of the distributions mentioned in subparagraphs 5(c)(i) (if any) and 5(d)(i) is the same as the sum of the attributable income mentioned in subparagraphs 5(c)(ii) and 5(d)(ii); but\n\n(b) the amount of the distribution mentioned in subparagraph 5(d)(i) is greater than the amount of attributable income mentioned in subparagraph 5 (d)(ii).\n\n  (2) The Commission must consider determining that the difference between the amounts referred to in paragraph (1)(b) is excluded income in relation to the attributable income of the individual mentioned in paragraph 5(c).\n\n### 7 Sum of distributions is less than sum of attributable income\n\n(1) This section applies if:\n\n(a) the sum of the distributions mentioned in subparagraphs 5 (c)(i) (if any) and 5(d)(i) is less than the sum of the attributable income mentioned in subparagraphs 5(c)(ii) and 5(d)(ii); but\n\n(b) the amount of the distribution mentioned in subparagraph 5(d)(i) is greater than the amount of attributable income mentioned in subparagraph 5(d)(ii).\n\n(2) The Commission must consider determining that the difference between the amounts referred to in paragraph (1)(b) is excluded income in relation to the attributable income of the individual mentioned in paragraph 5(c).\n\n### 8 Sum of distributions is greater than sum of attributable income\n\n(1) This section applies if:\n\n(a) the sum of the distributions mentioned in subparagraphs 5(c)(i) (if any) and 5(d)(i) is greater than the sum of the attributable income mentioned in subparagraphs 5(c)(ii) and 5(d)(ii); but\n\n(b) the amount of the distribution mentioned in subparagraph 5(c)(i) (if any) is less than the amount of attributable income mentioned in subparagraph 5(c)(ii).\n\n(2) The Commission must consider determining that the difference between the amounts referred to in paragraph (1)(b) is excluded income in relation to the attributable income of the individual mentioned in paragraph 5(c).\n\n## Division 2.2 No double counting—one member of couple is not attributable stakeholder\n\n### 9 Distribution made to partner who is not attributable stakeholder\n\n(1) This section applies if, in respect of an individual, the following circumstances exist:\n\n(a) the individual is a member of a couple;\n\n(b) the individual is an attributable stakeholder of a company or trust, but the individual’s partner is not an attributable stakeholder of the company or trust;\n\n(c) during a derivation period of the company or trust, the individual:\n\n(i) may, or may not, receive a distribution from the company or trust; but\n\n(ii) is taken to receive an amount of attributable income during the attribution period that relates to the derivation period;\n\n(d) during the derivation period mentioned in paragraph (c), the individual’s partner receives a distribution from the company or trust.\n\n(2) The Commission must consider determining that an amount equal to the amount of the distribution received by the partner is excluded income in relation to the attributable stakeholder.\n\n## Division 2.3 Investor makes genuine transfer and receives distribution or credit\n\n### 10 Application of Division 2.3\n\nThis Division applies if:\n\n(a) an individual (the investor) makes a genuine transfer of capital to a company or trust of which the investor is not an attributable stakeholder; and\n\n(b) during a derivation period of the company or trust, the investor receives a distribution from the company or trust.\n\n### 11 Genuine transfer of capital\n\nFor section 10, a transfer of capital is a genuine transfer of capital if:\n\n(a) the investor receives, as consideration for the transfer, shares in the company, or units in the trust, of a value that is equivalent to the value of the capital transferred; and\n\n(b) the investor has a legal or equitable right to a share of the capital of the company or trust; and\n\n(c) the investor has a legal or equitable right to receive dividends or distributions in accordance with the constituent documents of the company or the terms of the trust; and\n\n(d) the investor is over 18 years of age.\n\n### 12 Excluded income\n\n(1) This section applies if:\n\n(a) an individual who is an attributable stakeholder of a company or trust is taken to receive attributable income in accordance with subsection 52ZZK(1) of the Act; and\n\n(b) the attributable income of the individual is taken to include additional ordinary income in the circumstances mentioned in section 10.\n\n(2) The Commission must consider determining that the amount of additional ordinary income worked out in accordance with subsection (3) is excluded income in relation to the attributable stakeholder.\n\n(3) The amount of excluded income is worked out by multiplying the amount of the distribution mentioned in paragraph 10(b) by the income attribution percentage of the attributable stakeholder.\n\n  \n\n# Part 3 Determination about excluded income (Act, s 52ZZL)\n\n## Division 3.1 No double counting of attributed income—general\n\n### 13 No double counting of attributed income—general\n\n(1) For paragraphs 52ZZL(1)(d) and (e) and (2)(d) and (e) of the Act, the Commission must have regard to the ordinary income of the individual received during the relevant attribution period and consider if the individual is an attributable stakeholder of:\n\n(a) more than 1 controlled private company; or\n\n(b) more than 1 controlled private trust; or\n\n(c) at least 1 controlled private company and 1 controlled private trust.\n\n(2) For paragraphs 52ZZL(1)(d) and (e) and (2)(d) and (e) of the Act, the Commission must also consider if a company or trust mentioned in subsection (1) has derived an amount, directly or indirectly, by way of dividend or other distribution from another controlled private company or controlled private trust.\n\n### 14 No double counting if ordinary income significantly diminished\n\n(1) This section applies if:\n\n(a) a company or trust makes a distribution to an individual who is an attributable stakeholder of the company or trust; and\n\n(b) the individual would, but for this section, be taken to receive an amount of ordinary income over a period of 12 months in accordance with section 46A of the Act; and\n\n(c) the ordinary income of the individual derived from the company or trust during an attribution period has ceased, or is significantly diminished, because the company or trust:\n\n(i) has been wound-up or otherwise ceased to exist; or\n\n(ii) has been subject to circumstances adversely affecting its profitability.\n\n(2) For paragraphs 52ZZL(1)(d) and (e) and (2)(d) and (e) of the Act, the Commission must consider:\n\n(a) whether, in all the circumstances, the application of section 46A of the Act would be unfair or unreasonable in relation to the individual; and\n\n(b) if section 46A applies unfairly or unreasonably in relation to the individual, determining that the ordinary income of the individual does not include the whole or part of the amount or value distributed to the individual.\n\n## Division 3.2 Distributions by companies\n\n### 15 No double counting of attributed income—distribution by company to all attributable stakeholders\n\n(1) This section applies if:\n\n(a) during a particular derivation period of a company, an individual receives a distribution of capital from the company (the distribution); and\n\n(b) the individual is an attributable stakeholder of the company during an attribution period that corresponds with the derivation period of the company; and\n\n(c) the distribution made to the attributable stakeholder is part of a distribution to all attributable stakeholders of the company (the total distribution); and\n\n(d) the proportion that the distribution to each attributable stakeholder bears to the total distribution, expressed as a percentage, is the same as each attributable stakeholder’s asset attribution percentage in relation to the company.\n\n(2) For paragraph 52ZZL(1)(d) of the Act, the Commission must consider determining that the ordinary income of the individual received during the attribution period does not include the distribution if, but for this section, the amount or value of the distribution would be included in the ordinary income of the individual for that period.\n\n(3) For paragraph 52ZZL(1)(e) of the Act, the Commission must consider determining that the ordinary income of the individual received during the attribution period does not include any part of the amount or value of the distribution if, but for this section, any part of the amount or value of the distribution would be included in the ordinary income of the individual for that period.\n\n### 16 No double counting of attributed income—other distributions by a company\n\n(1) This section applies if:\n\n(a) during a particular derivation period of a company, an individual receives a distribution of capital or profits from the company (the distribution); and\n\n(b) the individual is an attributable stakeholder of the company during an attribution period that corresponds with the derivation period of the company; and\n\n(c) the distribution is made in circumstances other than those mentioned in section 14 and paragraphs 15(1)(c) and (d); and\n\n(d) the individual is taken to receive additional ordinary income during that attribution period in accordance with subsection 52ZZK(1) of the Act.\n\n(2) For paragraph 52ZZL(1)(d) of the Act, if the amount of the distribution is less than, or equal to, the additional ordinary income that the individual is taken to receive in accordance with subsection 52ZZK(1) of the Act during the attribution period, the Commission must consider determining that the ordinary income of the individual received during that period does not include the amount of that distribution.\n\n(3) For paragraph 52ZZL(1)(e) of the Act, if the amount of the distribution exceeds the additional ordinary income that the individual is taken to receive in accordance with subsection 52ZZK(1) of the Act during the attribution period, the Commission must consider determining that the ordinary income of the individual received during that period does not include so much of the amount of the distribution that equals the additional ordinary income that the individual is taken to receive in accordance with subsection 52ZZK(1) of the Act.\n\n## Division 3.3 Distributions by trusts\n\n### 17 No double counting of attributed income—distribution by trust to all attributable stakeholders\n\n(1) This section applies if:\n\n(a) during a particular derivation period of a trust, an individual receives a distribution of corpus from the trust (the distribution); and\n\n(b) the individual is an attributable stakeholder of the trust during an attribution period that corresponds with the derivation period of the trust; and\n\n(c) the distribution made to the attributable stakeholder is part of a distribution to all attributable stakeholders of the trust (the total distribution); and\n\n(d) the proportion that the distribution to each attributable stakeholder bears to the total distribution, expressed as a percentage, is the same as the attributable stakeholder’s asset attribution percentage in relation to the trust.\n\n(2) For paragraph 52ZZL(2)(d) of the Act, the Commission must consider determining that the ordinary income of the individual received during the attribution period does not include the amount or value of the distribution if, but for this section, the distribution would be included in the ordinary income of the individual for that period.\n\n(3) For paragraph 52ZZL(2)(e) of the Act, the Commission must consider determining that the ordinary income of the individual received during the attribution period does not include any part of the amount or value of the distribution if, but for this section, any part of the amount or value of the distribution would be included in the ordinary income of the individual for that period.\n\n### 18 No double counting of attributed income—other distributions by trust\n\n(1) This section applies if:\n\n(a) during a particular derivation period of a trust, an individual receives a distribution of corpus or income from the trust (the distribution); and\n\n(b) the individual is an attributable stakeholder of the trust during an attribution period that corresponds with the derivation period of the trust; and\n\n(c) the distribution is made in circumstances other than those mentioned in section 14 and paragraphs 17(1)(c) and (d); and\n\n(d) the individual is taken to receive additional ordinary income, during that attribution period, in accordance with subsection 52ZZK(1) of the Act.\n\n(2) For paragraph 52ZZL(2)(d) of the Act, if the amount of the distribution is less than, or equal to, the additional ordinary income that the individual is taken to receive in accordance with subsection 52ZZK(1) of the Act during the attribution period, the Commission must consider determining that the ordinary income of the individual received during that period does not include the amount of that distribution.\n\n(3) For paragraph 52ZZL(2)(e) of the Act, if the amount of the distribution exceeds the additional ordinary income that the individual is taken to receive in accordance with subsection 52ZZK(1) of the Act during the attribution period, the Commission must consider determining that the ordinary income of the individual received during that period does not include so much of the amount of the distribution that equals the additional ordinary income that the individual is taken to receive in accordance with subsection 52ZZK(1) of the Act.\n\n  \n\n# Part 4 Determination of derivation period (Act, s 52ZZP)\n\n### 19 Derivation period must reflect typical income\n\n(1) This section applies to the determination of a specified period as the derivation period of a specified company or trust in relation to an attributable stakeholder of the company or trust.\n\n(2) The derivation period must be a period that is determined having regard to the following matters:\n\n(a) the ordinary income of the company or trust for a derivation period referred to in subsection 52ZZP(1) of the Act;\n\n(b) the ordinary income of the company or trust for any other period or periods that may reasonably be regarded as typical earning periods for the company or trust;\n\n(c) any circumstances affecting the company or trust during the periods referred to in paragraphs (a) and (b);\n\n(d) whether, having regard to any circumstances referred to in paragraph (c), it is appropriate to use a derivation period different from the derivation period referred to in subsection 52ZZP(1) of the Act.\n\n  \n\n# Part 5 Determination of attribution period (Act, s 52ZZQ)\n\n### 20 Attribution period must reflect typical circumstances\n\n(1) This section applies to the determination of an attribution period in relation to:\n\n(a) a specified individual who is an attributable stakeholder of a specified company or trust; and\n\n(b) a specified derivation period of the company or trust.\n\n(2) The attribution period must be a period that is determined having regard to the following matters:\n\n(a) the ordinary income of the attributable stakeholder for the derivation period;\n\n(b) the ordinary income of the attributable stakeholder for any other period or periods that may reasonably be regarded as typical earning periods for the attributable stakeholder;\n\n(c) any circumstances affecting the attributable stakeholder during the periods referred to in paragraphs (a) and (b);\n\n(d) any circumstances that may reasonably be regarded as likely to affect the ordinary income of the attributable stakeholder.","sortOrder":20},{"sectionNumber":"13","sectionType":"division","heading":"No double counting of attributed income—general","content":"### 13 No double counting of attributed income—general\n\n(1) For paragraphs 52ZZL(1)(d) and (e) and (2)(d) and (e) of the Act, the Commission must have regard to the ordinary income of the individual received during the relevant attribution period and consider if the individual is an attributable stakeholder of:\n\n(a) more than 1 controlled private company; or\n\n(b) more than 1 controlled private trust; or\n\n(c) at least 1 controlled private company and 1 controlled private trust.\n\n(2) For paragraphs 52ZZL(1)(d) and (e) and (2)(d) and (e) of the Act, the Commission must also consider if a company or trust mentioned in subsection (1) has derived an amount, directly or indirectly, by way of dividend or other distribution from another controlled private company or controlled private trust.","sortOrder":21},{"sectionNumber":"14","sectionType":"division","heading":"No double counting if ordinary income significantly diminished","content":"### 14 No double counting if ordinary income significantly diminished\n\n(1) This section applies if:\n\n(a) a company or trust makes a distribution to an individual who is an attributable stakeholder of the company or trust; and\n\n(b) the individual would, but for this section, be taken to receive an amount of ordinary income over a period of 12 months in accordance with section 46A of the Act; and\n\n(c) the ordinary income of the individual derived from the company or trust during an attribution period has ceased, or is significantly diminished, because the company or trust:\n\n(i) has been wound-up or otherwise ceased to exist; or\n\n(ii) has been subject to circumstances adversely affecting its profitability.\n\n(2) For paragraphs 52ZZL(1)(d) and (e) and (2)(d) and (e) of the Act, the Commission must consider:\n\n(a) whether, in all the circumstances, the application of section 46A of the Act would be unfair or unreasonable in relation to the individual; and\n\n(b) if section 46A applies unfairly or unreasonably in relation to the individual, determining that the ordinary income of the individual does not include the whole or part of the amount or value distributed to the individual.","sortOrder":22},{"sectionNumber":"Division 3.2 Distributions by companies","sectionType":"part","heading":"Division 3.2 Distributions by companies","content":"# Part 1 Preliminary\n\n### 1 Name\n\nThis instrument is the Veterans’ Entitlements (Attribution of Income) Principles 2025.\n\n### 2 Commencement\n\nThis instrument commences on the day after the day it is registered.\n\n### 3 Authority\n\nThis instrument is made under section 52ZZZQ of the Veterans’ Entitlements Act 1986.\n\n### 3A Repeal\n\nSchedule 4 to the Veterans’ Affairs (Legislative Instrument Re-making Exercise) Instrument 2014 is repealed.\n\n### 4 Definitions\n\n> Note: A number of expressions used in this instrument are defined in the Act, including the following:\n\n    (a) attributable stakeholder – of a company or trust (see section 52ZZJ);\n    (b) Commission (see section 5Q);\n    (c) company (see section 52ZO);\n    (d) member of a couple (see section 5E);\n    (e) partner (see section 5E);\n    (f) trust (see section 52ZO of the Act).\n  In this instrument, unless the contrary intention appears:\n\n> Act means the Veterans’ Entitlements Act 1986.\n\n> attributable income, in relation to an individual who is an attributable stakeholder of a company or trust, means income that the individual is taken to receive during an attribution period of the company or trust.\n\n> distribution, in relation to a trust, includes an amount credited by a trust to a beneficiary of the trust.\n\n### 4A Purpose\n\n  This instrument sets out decision-making principles with which the Commission must comply in making the following determinations:\n\n(a) a determination under subsection 52ZZK(2) of the Act that, for the purposes of the application of subsection 52ZZK(1) of the Act to a specified individual and a specified company or trust, a specified amount is excluded income;\n\n(b) a determination under section 52ZZL of the Act that the ordinary income of an individual does not include the amount or value of a distribution, or a part of the amount or value of a distribution, to the individual by a company or trust;\n\n(c) a determination under section 52ZZP(3) of the Act that a specified period is a derivation period of a company or trust for the purposes of the application of Subdivision G of Division 11A of Part IIIB of the Act to a specified individual and to a specified company or trust;\n\n(d) a determination under section 52ZZQ(1) of the Act that a specified period is an attribution period for the purposes of the application of Division 11A of Part IIIB of the Act to a specified individual and to a specified company or trust.\n\n  \n\n# Part 2 Determination about excluded income (Act, s 52ZZK)\n\n## Division 2.1 No double counting—both members of couple are attributable stakeholders of company or trust\n\n### 5 Application of Division 2.1\n\n  This Division applies if, in respect of an individual, the following circumstances exist:\n\n(a) the individual is a member of a couple;\n\n(b) the individual and the individual’s partner are attributable stakeholders of a company or trust;\n\n(c) during a derivation period of the company or trust, the individual:\n\n(i) may, or may not, receive a distribution from the company or trust; but\n\n(ii) is taken to receive an amount of attributable income during the attribution period that relates to the derivation period;\n\n(d) during the derivation period mentioned in paragraph (c), the individual’s partner:\n\n(i) receives a distribution from the company or trust; and\n\n(ii) is taken to receive an amount of attributable income during the attribution period that relates to the derivation period.\n\n### 6 Sum of distributions is the same as sum of attributable income\n\n  (1) This section applies if:\n\n(a) the sum of the distributions mentioned in subparagraphs 5(c)(i) (if any) and 5(d)(i) is the same as the sum of the attributable income mentioned in subparagraphs 5(c)(ii) and 5(d)(ii); but\n\n(b) the amount of the distribution mentioned in subparagraph 5(d)(i) is greater than the amount of attributable income mentioned in subparagraph 5 (d)(ii).\n\n  (2) The Commission must consider determining that the difference between the amounts referred to in paragraph (1)(b) is excluded income in relation to the attributable income of the individual mentioned in paragraph 5(c).\n\n### 7 Sum of distributions is less than sum of attributable income\n\n(1) This section applies if:\n\n(a) the sum of the distributions mentioned in subparagraphs 5 (c)(i) (if any) and 5(d)(i) is less than the sum of the attributable income mentioned in subparagraphs 5(c)(ii) and 5(d)(ii); but\n\n(b) the amount of the distribution mentioned in subparagraph 5(d)(i) is greater than the amount of attributable income mentioned in subparagraph 5(d)(ii).\n\n(2) The Commission must consider determining that the difference between the amounts referred to in paragraph (1)(b) is excluded income in relation to the attributable income of the individual mentioned in paragraph 5(c).\n\n### 8 Sum of distributions is greater than sum of attributable income\n\n(1) This section applies if:\n\n(a) the sum of the distributions mentioned in subparagraphs 5(c)(i) (if any) and 5(d)(i) is greater than the sum of the attributable income mentioned in subparagraphs 5(c)(ii) and 5(d)(ii); but\n\n(b) the amount of the distribution mentioned in subparagraph 5(c)(i) (if any) is less than the amount of attributable income mentioned in subparagraph 5(c)(ii).\n\n(2) The Commission must consider determining that the difference between the amounts referred to in paragraph (1)(b) is excluded income in relation to the attributable income of the individual mentioned in paragraph 5(c).\n\n## Division 2.2 No double counting—one member of couple is not attributable stakeholder\n\n### 9 Distribution made to partner who is not attributable stakeholder\n\n(1) This section applies if, in respect of an individual, the following circumstances exist:\n\n(a) the individual is a member of a couple;\n\n(b) the individual is an attributable stakeholder of a company or trust, but the individual’s partner is not an attributable stakeholder of the company or trust;\n\n(c) during a derivation period of the company or trust, the individual:\n\n(i) may, or may not, receive a distribution from the company or trust; but\n\n(ii) is taken to receive an amount of attributable income during the attribution period that relates to the derivation period;\n\n(d) during the derivation period mentioned in paragraph (c), the individual’s partner receives a distribution from the company or trust.\n\n(2) The Commission must consider determining that an amount equal to the amount of the distribution received by the partner is excluded income in relation to the attributable stakeholder.\n\n## Division 2.3 Investor makes genuine transfer and receives distribution or credit\n\n### 10 Application of Division 2.3\n\nThis Division applies if:\n\n(a) an individual (the investor) makes a genuine transfer of capital to a company or trust of which the investor is not an attributable stakeholder; and\n\n(b) during a derivation period of the company or trust, the investor receives a distribution from the company or trust.\n\n### 11 Genuine transfer of capital\n\nFor section 10, a transfer of capital is a genuine transfer of capital if:\n\n(a) the investor receives, as consideration for the transfer, shares in the company, or units in the trust, of a value that is equivalent to the value of the capital transferred; and\n\n(b) the investor has a legal or equitable right to a share of the capital of the company or trust; and\n\n(c) the investor has a legal or equitable right to receive dividends or distributions in accordance with the constituent documents of the company or the terms of the trust; and\n\n(d) the investor is over 18 years of age.\n\n### 12 Excluded income\n\n(1) This section applies if:\n\n(a) an individual who is an attributable stakeholder of a company or trust is taken to receive attributable income in accordance with subsection 52ZZK(1) of the Act; and\n\n(b) the attributable income of the individual is taken to include additional ordinary income in the circumstances mentioned in section 10.\n\n(2) The Commission must consider determining that the amount of additional ordinary income worked out in accordance with subsection (3) is excluded income in relation to the attributable stakeholder.\n\n(3) The amount of excluded income is worked out by multiplying the amount of the distribution mentioned in paragraph 10(b) by the income attribution percentage of the attributable stakeholder.\n\n  \n\n# Part 3 Determination about excluded income (Act, s 52ZZL)\n\n## Division 3.1 No double counting of attributed income—general\n\n### 13 No double counting of attributed income—general\n\n(1) For paragraphs 52ZZL(1)(d) and (e) and (2)(d) and (e) of the Act, the Commission must have regard to the ordinary income of the individual received during the relevant attribution period and consider if the individual is an attributable stakeholder of:\n\n(a) more than 1 controlled private company; or\n\n(b) more than 1 controlled private trust; or\n\n(c) at least 1 controlled private company and 1 controlled private trust.\n\n(2) For paragraphs 52ZZL(1)(d) and (e) and (2)(d) and (e) of the Act, the Commission must also consider if a company or trust mentioned in subsection (1) has derived an amount, directly or indirectly, by way of dividend or other distribution from another controlled private company or controlled private trust.\n\n### 14 No double counting if ordinary income significantly diminished\n\n(1) This section applies if:\n\n(a) a company or trust makes a distribution to an individual who is an attributable stakeholder of the company or trust; and\n\n(b) the individual would, but for this section, be taken to receive an amount of ordinary income over a period of 12 months in accordance with section 46A of the Act; and\n\n(c) the ordinary income of the individual derived from the company or trust during an attribution period has ceased, or is significantly diminished, because the company or trust:\n\n(i) has been wound-up or otherwise ceased to exist; or\n\n(ii) has been subject to circumstances adversely affecting its profitability.\n\n(2) For paragraphs 52ZZL(1)(d) and (e) and (2)(d) and (e) of the Act, the Commission must consider:\n\n(a) whether, in all the circumstances, the application of section 46A of the Act would be unfair or unreasonable in relation to the individual; and\n\n(b) if section 46A applies unfairly or unreasonably in relation to the individual, determining that the ordinary income of the individual does not include the whole or part of the amount or value distributed to the individual.\n\n## Division 3.2 Distributions by companies\n\n### 15 No double counting of attributed income—distribution by company to all attributable stakeholders\n\n(1) This section applies if:\n\n(a) during a particular derivation period of a company, an individual receives a distribution of capital from the company (the distribution); and\n\n(b) the individual is an attributable stakeholder of the company during an attribution period that corresponds with the derivation period of the company; and\n\n(c) the distribution made to the attributable stakeholder is part of a distribution to all attributable stakeholders of the company (the total distribution); and\n\n(d) the proportion that the distribution to each attributable stakeholder bears to the total distribution, expressed as a percentage, is the same as each attributable stakeholder’s asset attribution percentage in relation to the company.\n\n(2) For paragraph 52ZZL(1)(d) of the Act, the Commission must consider determining that the ordinary income of the individual received during the attribution period does not include the distribution if, but for this section, the amount or value of the distribution would be included in the ordinary income of the individual for that period.\n\n(3) For paragraph 52ZZL(1)(e) of the Act, the Commission must consider determining that the ordinary income of the individual received during the attribution period does not include any part of the amount or value of the distribution if, but for this section, any part of the amount or value of the distribution would be included in the ordinary income of the individual for that period.\n\n### 16 No double counting of attributed income—other distributions by a company\n\n(1) This section applies if:\n\n(a) during a particular derivation period of a company, an individual receives a distribution of capital or profits from the company (the distribution); and\n\n(b) the individual is an attributable stakeholder of the company during an attribution period that corresponds with the derivation period of the company; and\n\n(c) the distribution is made in circumstances other than those mentioned in section 14 and paragraphs 15(1)(c) and (d); and\n\n(d) the individual is taken to receive additional ordinary income during that attribution period in accordance with subsection 52ZZK(1) of the Act.\n\n(2) For paragraph 52ZZL(1)(d) of the Act, if the amount of the distribution is less than, or equal to, the additional ordinary income that the individual is taken to receive in accordance with subsection 52ZZK(1) of the Act during the attribution period, the Commission must consider determining that the ordinary income of the individual received during that period does not include the amount of that distribution.\n\n(3) For paragraph 52ZZL(1)(e) of the Act, if the amount of the distribution exceeds the additional ordinary income that the individual is taken to receive in accordance with subsection 52ZZK(1) of the Act during the attribution period, the Commission must consider determining that the ordinary income of the individual received during that period does not include so much of the amount of the distribution that equals the additional ordinary income that the individual is taken to receive in accordance with subsection 52ZZK(1) of the Act.\n\n## Division 3.3 Distributions by trusts\n\n### 17 No double counting of attributed income—distribution by trust to all attributable stakeholders\n\n(1) This section applies if:\n\n(a) during a particular derivation period of a trust, an individual receives a distribution of corpus from the trust (the distribution); and\n\n(b) the individual is an attributable stakeholder of the trust during an attribution period that corresponds with the derivation period of the trust; and\n\n(c) the distribution made to the attributable stakeholder is part of a distribution to all attributable stakeholders of the trust (the total distribution); and\n\n(d) the proportion that the distribution to each attributable stakeholder bears to the total distribution, expressed as a percentage, is the same as the attributable stakeholder’s asset attribution percentage in relation to the trust.\n\n(2) For paragraph 52ZZL(2)(d) of the Act, the Commission must consider determining that the ordinary income of the individual received during the attribution period does not include the amount or value of the distribution if, but for this section, the distribution would be included in the ordinary income of the individual for that period.\n\n(3) For paragraph 52ZZL(2)(e) of the Act, the Commission must consider determining that the ordinary income of the individual received during the attribution period does not include any part of the amount or value of the distribution if, but for this section, any part of the amount or value of the distribution would be included in the ordinary income of the individual for that period.\n\n### 18 No double counting of attributed income—other distributions by trust\n\n(1) This section applies if:\n\n(a) during a particular derivation period of a trust, an individual receives a distribution of corpus or income from the trust (the distribution); and\n\n(b) the individual is an attributable stakeholder of the trust during an attribution period that corresponds with the derivation period of the trust; and\n\n(c) the distribution is made in circumstances other than those mentioned in section 14 and paragraphs 17(1)(c) and (d); and\n\n(d) the individual is taken to receive additional ordinary income, during that attribution period, in accordance with subsection 52ZZK(1) of the Act.\n\n(2) For paragraph 52ZZL(2)(d) of the Act, if the amount of the distribution is less than, or equal to, the additional ordinary income that the individual is taken to receive in accordance with subsection 52ZZK(1) of the Act during the attribution period, the Commission must consider determining that the ordinary income of the individual received during that period does not include the amount of that distribution.\n\n(3) For paragraph 52ZZL(2)(e) of the Act, if the amount of the distribution exceeds the additional ordinary income that the individual is taken to receive in accordance with subsection 52ZZK(1) of the Act during the attribution period, the Commission must consider determining that the ordinary income of the individual received during that period does not include so much of the amount of the distribution that equals the additional ordinary income that the individual is taken to receive in accordance with subsection 52ZZK(1) of the Act.\n\n  \n\n# Part 4 Determination of derivation period (Act, s 52ZZP)\n\n### 19 Derivation period must reflect typical income\n\n(1) This section applies to the determination of a specified period as the derivation period of a specified company or trust in relation to an attributable stakeholder of the company or trust.\n\n(2) The derivation period must be a period that is determined having regard to the following matters:\n\n(a) the ordinary income of the company or trust for a derivation period referred to in subsection 52ZZP(1) of the Act;\n\n(b) the ordinary income of the company or trust for any other period or periods that may reasonably be regarded as typical earning periods for the company or trust;\n\n(c) any circumstances affecting the company or trust during the periods referred to in paragraphs (a) and (b);\n\n(d) whether, having regard to any circumstances referred to in paragraph (c), it is appropriate to use a derivation period different from the derivation period referred to in subsection 52ZZP(1) of the Act.\n\n  \n\n# Part 5 Determination of attribution period (Act, s 52ZZQ)\n\n### 20 Attribution period must reflect typical circumstances\n\n(1) This section applies to the determination of an attribution period in relation to:\n\n(a) a specified individual who is an attributable stakeholder of a specified company or trust; and\n\n(b) a specified derivation period of the company or trust.\n\n(2) The attribution period must be a period that is determined having regard to the following matters:\n\n(a) the ordinary income of the attributable stakeholder for the derivation period;\n\n(b) the ordinary income of the attributable stakeholder for any other period or periods that may reasonably be regarded as typical earning periods for the attributable stakeholder;\n\n(c) any circumstances affecting the attributable stakeholder during the periods referred to in paragraphs (a) and (b);\n\n(d) any circumstances that may reasonably be regarded as likely to affect the ordinary income of the attributable stakeholder.","sortOrder":23},{"sectionNumber":"15","sectionType":"division","heading":"No double counting of attributed income—distribution by company to all attributable stakeholders","content":"### 15 No double counting of attributed income—distribution by company to all attributable stakeholders\n\n(1) This section applies if:\n\n(a) during a particular derivation period of a company, an individual receives a distribution of capital from the company (the distribution); and\n\n(b) the individual is an attributable stakeholder of the company during an attribution period that corresponds with the derivation period of the company; and\n\n(c) the distribution made to the attributable stakeholder is part of a distribution to all attributable stakeholders of the company (the total distribution); and\n\n(d) the proportion that the distribution to each attributable stakeholder bears to the total distribution, expressed as a percentage, is the same as each attributable stakeholder’s asset attribution percentage in relation to the company.\n\n(2) For paragraph 52ZZL(1)(d) of the Act, the Commission must consider determining that the ordinary income of the individual received during the attribution period does not include the distribution if, but for this section, the amount or value of the distribution would be included in the ordinary income of the individual for that period.\n\n(3) For paragraph 52ZZL(1)(e) of the Act, the Commission must consider determining that the ordinary income of the individual received during the attribution period does not include any part of the amount or value of the distribution if, but for this section, any part of the amount or value of the distribution would be included in the ordinary income of the individual for that period.","sortOrder":24},{"sectionNumber":"16","sectionType":"division","heading":"No double counting of attributed income—other distributions by a company","content":"### 16 No double counting of attributed income—other distributions by a company\n\n(1) This section applies if:\n\n(a) during a particular derivation period of a company, an individual receives a distribution of capital or profits from the company (the distribution); and\n\n(b) the individual is an attributable stakeholder of the company during an attribution period that corresponds with the derivation period of the company; and\n\n(c) the distribution is made in circumstances other than those mentioned in section 14 and paragraphs 15(1)(c) and (d); and\n\n(d) the individual is taken to receive additional ordinary income during that attribution period in accordance with subsection 52ZZK(1) of the Act.\n\n(2) For paragraph 52ZZL(1)(d) of the Act, if the amount of the distribution is less than, or equal to, the additional ordinary income that the individual is taken to receive in accordance with subsection 52ZZK(1) of the Act during the attribution period, the Commission must consider determining that the ordinary income of the individual received during that period does not include the amount of that distribution.\n\n(3) For paragraph 52ZZL(1)(e) of the Act, if the amount of the distribution exceeds the additional ordinary income that the individual is taken to receive in accordance with subsection 52ZZK(1) of the Act during the attribution period, the Commission must consider determining that the ordinary income of the individual received during that period does not include so much of the amount of the distribution that equals the additional ordinary income that the individual is taken to receive in accordance with subsection 52ZZK(1) of the Act.","sortOrder":25},{"sectionNumber":"Division 3.3 Distributions by trusts","sectionType":"part","heading":"Division 3.3 Distributions by trusts","content":"# Part 1 Preliminary\n\n### 1 Name\n\nThis instrument is the Veterans’ Entitlements (Attribution of Income) Principles 2025.\n\n### 2 Commencement\n\nThis instrument commences on the day after the day it is registered.\n\n### 3 Authority\n\nThis instrument is made under section 52ZZZQ of the Veterans’ Entitlements Act 1986.\n\n### 3A Repeal\n\nSchedule 4 to the Veterans’ Affairs (Legislative Instrument Re-making Exercise) Instrument 2014 is repealed.\n\n### 4 Definitions\n\n> Note: A number of expressions used in this instrument are defined in the Act, including the following:\n\n    (a) attributable stakeholder – of a company or trust (see section 52ZZJ);\n    (b) Commission (see section 5Q);\n    (c) company (see section 52ZO);\n    (d) member of a couple (see section 5E);\n    (e) partner (see section 5E);\n    (f) trust (see section 52ZO of the Act).\n  In this instrument, unless the contrary intention appears:\n\n> Act means the Veterans’ Entitlements Act 1986.\n\n> attributable income, in relation to an individual who is an attributable stakeholder of a company or trust, means income that the individual is taken to receive during an attribution period of the company or trust.\n\n> distribution, in relation to a trust, includes an amount credited by a trust to a beneficiary of the trust.\n\n### 4A Purpose\n\n  This instrument sets out decision-making principles with which the Commission must comply in making the following determinations:\n\n(a) a determination under subsection 52ZZK(2) of the Act that, for the purposes of the application of subsection 52ZZK(1) of the Act to a specified individual and a specified company or trust, a specified amount is excluded income;\n\n(b) a determination under section 52ZZL of the Act that the ordinary income of an individual does not include the amount or value of a distribution, or a part of the amount or value of a distribution, to the individual by a company or trust;\n\n(c) a determination under section 52ZZP(3) of the Act that a specified period is a derivation period of a company or trust for the purposes of the application of Subdivision G of Division 11A of Part IIIB of the Act to a specified individual and to a specified company or trust;\n\n(d) a determination under section 52ZZQ(1) of the Act that a specified period is an attribution period for the purposes of the application of Division 11A of Part IIIB of the Act to a specified individual and to a specified company or trust.\n\n  \n\n# Part 2 Determination about excluded income (Act, s 52ZZK)\n\n## Division 2.1 No double counting—both members of couple are attributable stakeholders of company or trust\n\n### 5 Application of Division 2.1\n\n  This Division applies if, in respect of an individual, the following circumstances exist:\n\n(a) the individual is a member of a couple;\n\n(b) the individual and the individual’s partner are attributable stakeholders of a company or trust;\n\n(c) during a derivation period of the company or trust, the individual:\n\n(i) may, or may not, receive a distribution from the company or trust; but\n\n(ii) is taken to receive an amount of attributable income during the attribution period that relates to the derivation period;\n\n(d) during the derivation period mentioned in paragraph (c), the individual’s partner:\n\n(i) receives a distribution from the company or trust; and\n\n(ii) is taken to receive an amount of attributable income during the attribution period that relates to the derivation period.\n\n### 6 Sum of distributions is the same as sum of attributable income\n\n  (1) This section applies if:\n\n(a) the sum of the distributions mentioned in subparagraphs 5(c)(i) (if any) and 5(d)(i) is the same as the sum of the attributable income mentioned in subparagraphs 5(c)(ii) and 5(d)(ii); but\n\n(b) the amount of the distribution mentioned in subparagraph 5(d)(i) is greater than the amount of attributable income mentioned in subparagraph 5 (d)(ii).\n\n  (2) The Commission must consider determining that the difference between the amounts referred to in paragraph (1)(b) is excluded income in relation to the attributable income of the individual mentioned in paragraph 5(c).\n\n### 7 Sum of distributions is less than sum of attributable income\n\n(1) This section applies if:\n\n(a) the sum of the distributions mentioned in subparagraphs 5 (c)(i) (if any) and 5(d)(i) is less than the sum of the attributable income mentioned in subparagraphs 5(c)(ii) and 5(d)(ii); but\n\n(b) the amount of the distribution mentioned in subparagraph 5(d)(i) is greater than the amount of attributable income mentioned in subparagraph 5(d)(ii).\n\n(2) The Commission must consider determining that the difference between the amounts referred to in paragraph (1)(b) is excluded income in relation to the attributable income of the individual mentioned in paragraph 5(c).\n\n### 8 Sum of distributions is greater than sum of attributable income\n\n(1) This section applies if:\n\n(a) the sum of the distributions mentioned in subparagraphs 5(c)(i) (if any) and 5(d)(i) is greater than the sum of the attributable income mentioned in subparagraphs 5(c)(ii) and 5(d)(ii); but\n\n(b) the amount of the distribution mentioned in subparagraph 5(c)(i) (if any) is less than the amount of attributable income mentioned in subparagraph 5(c)(ii).\n\n(2) The Commission must consider determining that the difference between the amounts referred to in paragraph (1)(b) is excluded income in relation to the attributable income of the individual mentioned in paragraph 5(c).\n\n## Division 2.2 No double counting—one member of couple is not attributable stakeholder\n\n### 9 Distribution made to partner who is not attributable stakeholder\n\n(1) This section applies if, in respect of an individual, the following circumstances exist:\n\n(a) the individual is a member of a couple;\n\n(b) the individual is an attributable stakeholder of a company or trust, but the individual’s partner is not an attributable stakeholder of the company or trust;\n\n(c) during a derivation period of the company or trust, the individual:\n\n(i) may, or may not, receive a distribution from the company or trust; but\n\n(ii) is taken to receive an amount of attributable income during the attribution period that relates to the derivation period;\n\n(d) during the derivation period mentioned in paragraph (c), the individual’s partner receives a distribution from the company or trust.\n\n(2) The Commission must consider determining that an amount equal to the amount of the distribution received by the partner is excluded income in relation to the attributable stakeholder.\n\n## Division 2.3 Investor makes genuine transfer and receives distribution or credit\n\n### 10 Application of Division 2.3\n\nThis Division applies if:\n\n(a) an individual (the investor) makes a genuine transfer of capital to a company or trust of which the investor is not an attributable stakeholder; and\n\n(b) during a derivation period of the company or trust, the investor receives a distribution from the company or trust.\n\n### 11 Genuine transfer of capital\n\nFor section 10, a transfer of capital is a genuine transfer of capital if:\n\n(a) the investor receives, as consideration for the transfer, shares in the company, or units in the trust, of a value that is equivalent to the value of the capital transferred; and\n\n(b) the investor has a legal or equitable right to a share of the capital of the company or trust; and\n\n(c) the investor has a legal or equitable right to receive dividends or distributions in accordance with the constituent documents of the company or the terms of the trust; and\n\n(d) the investor is over 18 years of age.\n\n### 12 Excluded income\n\n(1) This section applies if:\n\n(a) an individual who is an attributable stakeholder of a company or trust is taken to receive attributable income in accordance with subsection 52ZZK(1) of the Act; and\n\n(b) the attributable income of the individual is taken to include additional ordinary income in the circumstances mentioned in section 10.\n\n(2) The Commission must consider determining that the amount of additional ordinary income worked out in accordance with subsection (3) is excluded income in relation to the attributable stakeholder.\n\n(3) The amount of excluded income is worked out by multiplying the amount of the distribution mentioned in paragraph 10(b) by the income attribution percentage of the attributable stakeholder.\n\n  \n\n# Part 3 Determination about excluded income (Act, s 52ZZL)\n\n## Division 3.1 No double counting of attributed income—general\n\n### 13 No double counting of attributed income—general\n\n(1) For paragraphs 52ZZL(1)(d) and (e) and (2)(d) and (e) of the Act, the Commission must have regard to the ordinary income of the individual received during the relevant attribution period and consider if the individual is an attributable stakeholder of:\n\n(a) more than 1 controlled private company; or\n\n(b) more than 1 controlled private trust; or\n\n(c) at least 1 controlled private company and 1 controlled private trust.\n\n(2) For paragraphs 52ZZL(1)(d) and (e) and (2)(d) and (e) of the Act, the Commission must also consider if a company or trust mentioned in subsection (1) has derived an amount, directly or indirectly, by way of dividend or other distribution from another controlled private company or controlled private trust.\n\n### 14 No double counting if ordinary income significantly diminished\n\n(1) This section applies if:\n\n(a) a company or trust makes a distribution to an individual who is an attributable stakeholder of the company or trust; and\n\n(b) the individual would, but for this section, be taken to receive an amount of ordinary income over a period of 12 months in accordance with section 46A of the Act; and\n\n(c) the ordinary income of the individual derived from the company or trust during an attribution period has ceased, or is significantly diminished, because the company or trust:\n\n(i) has been wound-up or otherwise ceased to exist; or\n\n(ii) has been subject to circumstances adversely affecting its profitability.\n\n(2) For paragraphs 52ZZL(1)(d) and (e) and (2)(d) and (e) of the Act, the Commission must consider:\n\n(a) whether, in all the circumstances, the application of section 46A of the Act would be unfair or unreasonable in relation to the individual; and\n\n(b) if section 46A applies unfairly or unreasonably in relation to the individual, determining that the ordinary income of the individual does not include the whole or part of the amount or value distributed to the individual.\n\n## Division 3.2 Distributions by companies\n\n### 15 No double counting of attributed income—distribution by company to all attributable stakeholders\n\n(1) This section applies if:\n\n(a) during a particular derivation period of a company, an individual receives a distribution of capital from the company (the distribution); and\n\n(b) the individual is an attributable stakeholder of the company during an attribution period that corresponds with the derivation period of the company; and\n\n(c) the distribution made to the attributable stakeholder is part of a distribution to all attributable stakeholders of the company (the total distribution); and\n\n(d) the proportion that the distribution to each attributable stakeholder bears to the total distribution, expressed as a percentage, is the same as each attributable stakeholder’s asset attribution percentage in relation to the company.\n\n(2) For paragraph 52ZZL(1)(d) of the Act, the Commission must consider determining that the ordinary income of the individual received during the attribution period does not include the distribution if, but for this section, the amount or value of the distribution would be included in the ordinary income of the individual for that period.\n\n(3) For paragraph 52ZZL(1)(e) of the Act, the Commission must consider determining that the ordinary income of the individual received during the attribution period does not include any part of the amount or value of the distribution if, but for this section, any part of the amount or value of the distribution would be included in the ordinary income of the individual for that period.\n\n### 16 No double counting of attributed income—other distributions by a company\n\n(1) This section applies if:\n\n(a) during a particular derivation period of a company, an individual receives a distribution of capital or profits from the company (the distribution); and\n\n(b) the individual is an attributable stakeholder of the company during an attribution period that corresponds with the derivation period of the company; and\n\n(c) the distribution is made in circumstances other than those mentioned in section 14 and paragraphs 15(1)(c) and (d); and\n\n(d) the individual is taken to receive additional ordinary income during that attribution period in accordance with subsection 52ZZK(1) of the Act.\n\n(2) For paragraph 52ZZL(1)(d) of the Act, if the amount of the distribution is less than, or equal to, the additional ordinary income that the individual is taken to receive in accordance with subsection 52ZZK(1) of the Act during the attribution period, the Commission must consider determining that the ordinary income of the individual received during that period does not include the amount of that distribution.\n\n(3) For paragraph 52ZZL(1)(e) of the Act, if the amount of the distribution exceeds the additional ordinary income that the individual is taken to receive in accordance with subsection 52ZZK(1) of the Act during the attribution period, the Commission must consider determining that the ordinary income of the individual received during that period does not include so much of the amount of the distribution that equals the additional ordinary income that the individual is taken to receive in accordance with subsection 52ZZK(1) of the Act.\n\n## Division 3.3 Distributions by trusts\n\n### 17 No double counting of attributed income—distribution by trust to all attributable stakeholders\n\n(1) This section applies if:\n\n(a) during a particular derivation period of a trust, an individual receives a distribution of corpus from the trust (the distribution); and\n\n(b) the individual is an attributable stakeholder of the trust during an attribution period that corresponds with the derivation period of the trust; and\n\n(c) the distribution made to the attributable stakeholder is part of a distribution to all attributable stakeholders of the trust (the total distribution); and\n\n(d) the proportion that the distribution to each attributable stakeholder bears to the total distribution, expressed as a percentage, is the same as the attributable stakeholder’s asset attribution percentage in relation to the trust.\n\n(2) For paragraph 52ZZL(2)(d) of the Act, the Commission must consider determining that the ordinary income of the individual received during the attribution period does not include the amount or value of the distribution if, but for this section, the distribution would be included in the ordinary income of the individual for that period.\n\n(3) For paragraph 52ZZL(2)(e) of the Act, the Commission must consider determining that the ordinary income of the individual received during the attribution period does not include any part of the amount or value of the distribution if, but for this section, any part of the amount or value of the distribution would be included in the ordinary income of the individual for that period.\n\n### 18 No double counting of attributed income—other distributions by trust\n\n(1) This section applies if:\n\n(a) during a particular derivation period of a trust, an individual receives a distribution of corpus or income from the trust (the distribution); and\n\n(b) the individual is an attributable stakeholder of the trust during an attribution period that corresponds with the derivation period of the trust; and\n\n(c) the distribution is made in circumstances other than those mentioned in section 14 and paragraphs 17(1)(c) and (d); and\n\n(d) the individual is taken to receive additional ordinary income, during that attribution period, in accordance with subsection 52ZZK(1) of the Act.\n\n(2) For paragraph 52ZZL(2)(d) of the Act, if the amount of the distribution is less than, or equal to, the additional ordinary income that the individual is taken to receive in accordance with subsection 52ZZK(1) of the Act during the attribution period, the Commission must consider determining that the ordinary income of the individual received during that period does not include the amount of that distribution.\n\n(3) For paragraph 52ZZL(2)(e) of the Act, if the amount of the distribution exceeds the additional ordinary income that the individual is taken to receive in accordance with subsection 52ZZK(1) of the Act during the attribution period, the Commission must consider determining that the ordinary income of the individual received during that period does not include so much of the amount of the distribution that equals the additional ordinary income that the individual is taken to receive in accordance with subsection 52ZZK(1) of the Act.\n\n  \n\n# Part 4 Determination of derivation period (Act, s 52ZZP)\n\n### 19 Derivation period must reflect typical income\n\n(1) This section applies to the determination of a specified period as the derivation period of a specified company or trust in relation to an attributable stakeholder of the company or trust.\n\n(2) The derivation period must be a period that is determined having regard to the following matters:\n\n(a) the ordinary income of the company or trust for a derivation period referred to in subsection 52ZZP(1) of the Act;\n\n(b) the ordinary income of the company or trust for any other period or periods that may reasonably be regarded as typical earning periods for the company or trust;\n\n(c) any circumstances affecting the company or trust during the periods referred to in paragraphs (a) and (b);\n\n(d) whether, having regard to any circumstances referred to in paragraph (c), it is appropriate to use a derivation period different from the derivation period referred to in subsection 52ZZP(1) of the Act.\n\n  \n\n# Part 5 Determination of attribution period (Act, s 52ZZQ)\n\n### 20 Attribution period must reflect typical circumstances\n\n(1) This section applies to the determination of an attribution period in relation to:\n\n(a) a specified individual who is an attributable stakeholder of a specified company or trust; and\n\n(b) a specified derivation period of the company or trust.\n\n(2) The attribution period must be a period that is determined having regard to the following matters:\n\n(a) the ordinary income of the attributable stakeholder for the derivation period;\n\n(b) the ordinary income of the attributable stakeholder for any other period or periods that may reasonably be regarded as typical earning periods for the attributable stakeholder;\n\n(c) any circumstances affecting the attributable stakeholder during the periods referred to in paragraphs (a) and (b);\n\n(d) any circumstances that may reasonably be regarded as likely to affect the ordinary income of the attributable stakeholder.","sortOrder":26},{"sectionNumber":"17","sectionType":"division","heading":"No double counting of attributed income—distribution by trust to all attributable stakeholders","content":"### 17 No double counting of attributed income—distribution by trust to all attributable stakeholders\n\n(1) This section applies if:\n\n(a) during a particular derivation period of a trust, an individual receives a distribution of corpus from the trust (the distribution); and\n\n(b) the individual is an attributable stakeholder of the trust during an attribution period that corresponds with the derivation period of the trust; and\n\n(c) the distribution made to the attributable stakeholder is part of a distribution to all attributable stakeholders of the trust (the total distribution); and\n\n(d) the proportion that the distribution to each attributable stakeholder bears to the total distribution, expressed as a percentage, is the same as the attributable stakeholder’s asset attribution percentage in relation to the trust.\n\n(2) For paragraph 52ZZL(2)(d) of the Act, the Commission must consider determining that the ordinary income of the individual received during the attribution period does not include the amount or value of the distribution if, but for this section, the distribution would be included in the ordinary income of the individual for that period.\n\n(3) For paragraph 52ZZL(2)(e) of the Act, the Commission must consider determining that the ordinary income of the individual received during the attribution period does not include any part of the amount or value of the distribution if, but for this section, any part of the amount or value of the distribution would be included in the ordinary income of the individual for that period.","sortOrder":27},{"sectionNumber":"18","sectionType":"division","heading":"No double counting of attributed income—other distributions by trust","content":"### 18 No double counting of attributed income—other distributions by trust\n\n(1) This section applies if:\n\n(a) during a particular derivation period of a trust, an individual receives a distribution of corpus or income from the trust (the distribution); and\n\n(b) the individual is an attributable stakeholder of the trust during an attribution period that corresponds with the derivation period of the trust; and\n\n(c) the distribution is made in circumstances other than those mentioned in section 14 and paragraphs 17(1)(c) and (d); and\n\n(d) the individual is taken to receive additional ordinary income, during that attribution period, in accordance with subsection 52ZZK(1) of the Act.\n\n(2) For paragraph 52ZZL(2)(d) of the Act, if the amount of the distribution is less than, or equal to, the additional ordinary income that the individual is taken to receive in accordance with subsection 52ZZK(1) of the Act during the attribution period, the Commission must consider determining that the ordinary income of the individual received during that period does not include the amount of that distribution.\n\n(3) For paragraph 52ZZL(2)(e) of the Act, if the amount of the distribution exceeds the additional ordinary income that the individual is taken to receive in accordance with subsection 52ZZK(1) of the Act during the attribution period, the Commission must consider determining that the ordinary income of the individual received during that period does not include so much of the amount of the distribution that equals the additional ordinary income that the individual is taken to receive in accordance with subsection 52ZZK(1) of the Act.","sortOrder":28},{"sectionNumber":"Part 4","sectionType":"part","heading":"Determination of derivation period (Act, s 52ZZP)","content":"# Part 1 Preliminary\n\n### 1 Name\n\nThis instrument is the Veterans’ Entitlements (Attribution of Income) Principles 2025.\n\n### 2 Commencement\n\nThis instrument commences on the day after the day it is registered.\n\n### 3 Authority\n\nThis instrument is made under section 52ZZZQ of the Veterans’ Entitlements Act 1986.\n\n### 3A Repeal\n\nSchedule 4 to the Veterans’ Affairs (Legislative Instrument Re-making Exercise) Instrument 2014 is repealed.\n\n### 4 Definitions\n\n> Note: A number of expressions used in this instrument are defined in the Act, including the following:\n\n    (a) attributable stakeholder – of a company or trust (see section 52ZZJ);\n    (b) Commission (see section 5Q);\n    (c) company (see section 52ZO);\n    (d) member of a couple (see section 5E);\n    (e) partner (see section 5E);\n    (f) trust (see section 52ZO of the Act).\n  In this instrument, unless the contrary intention appears:\n\n> Act means the Veterans’ Entitlements Act 1986.\n\n> attributable income, in relation to an individual who is an attributable stakeholder of a company or trust, means income that the individual is taken to receive during an attribution period of the company or trust.\n\n> distribution, in relation to a trust, includes an amount credited by a trust to a beneficiary of the trust.\n\n### 4A Purpose\n\n  This instrument sets out decision-making principles with which the Commission must comply in making the following determinations:\n\n(a) a determination under subsection 52ZZK(2) of the Act that, for the purposes of the application of subsection 52ZZK(1) of the Act to a specified individual and a specified company or trust, a specified amount is excluded income;\n\n(b) a determination under section 52ZZL of the Act that the ordinary income of an individual does not include the amount or value of a distribution, or a part of the amount or value of a distribution, to the individual by a company or trust;\n\n(c) a determination under section 52ZZP(3) of the Act that a specified period is a derivation period of a company or trust for the purposes of the application of Subdivision G of Division 11A of Part IIIB of the Act to a specified individual and to a specified company or trust;\n\n(d) a determination under section 52ZZQ(1) of the Act that a specified period is an attribution period for the purposes of the application of Division 11A of Part IIIB of the Act to a specified individual and to a specified company or trust.\n\n  \n\n# Part 2 Determination about excluded income (Act, s 52ZZK)\n\n## Division 2.1 No double counting—both members of couple are attributable stakeholders of company or trust\n\n### 5 Application of Division 2.1\n\n  This Division applies if, in respect of an individual, the following circumstances exist:\n\n(a) the individual is a member of a couple;\n\n(b) the individual and the individual’s partner are attributable stakeholders of a company or trust;\n\n(c) during a derivation period of the company or trust, the individual:\n\n(i) may, or may not, receive a distribution from the company or trust; but\n\n(ii) is taken to receive an amount of attributable income during the attribution period that relates to the derivation period;\n\n(d) during the derivation period mentioned in paragraph (c), the individual’s partner:\n\n(i) receives a distribution from the company or trust; and\n\n(ii) is taken to receive an amount of attributable income during the attribution period that relates to the derivation period.\n\n### 6 Sum of distributions is the same as sum of attributable income\n\n  (1) This section applies if:\n\n(a) the sum of the distributions mentioned in subparagraphs 5(c)(i) (if any) and 5(d)(i) is the same as the sum of the attributable income mentioned in subparagraphs 5(c)(ii) and 5(d)(ii); but\n\n(b) the amount of the distribution mentioned in subparagraph 5(d)(i) is greater than the amount of attributable income mentioned in subparagraph 5 (d)(ii).\n\n  (2) The Commission must consider determining that the difference between the amounts referred to in paragraph (1)(b) is excluded income in relation to the attributable income of the individual mentioned in paragraph 5(c).\n\n### 7 Sum of distributions is less than sum of attributable income\n\n(1) This section applies if:\n\n(a) the sum of the distributions mentioned in subparagraphs 5 (c)(i) (if any) and 5(d)(i) is less than the sum of the attributable income mentioned in subparagraphs 5(c)(ii) and 5(d)(ii); but\n\n(b) the amount of the distribution mentioned in subparagraph 5(d)(i) is greater than the amount of attributable income mentioned in subparagraph 5(d)(ii).\n\n(2) The Commission must consider determining that the difference between the amounts referred to in paragraph (1)(b) is excluded income in relation to the attributable income of the individual mentioned in paragraph 5(c).\n\n### 8 Sum of distributions is greater than sum of attributable income\n\n(1) This section applies if:\n\n(a) the sum of the distributions mentioned in subparagraphs 5(c)(i) (if any) and 5(d)(i) is greater than the sum of the attributable income mentioned in subparagraphs 5(c)(ii) and 5(d)(ii); but\n\n(b) the amount of the distribution mentioned in subparagraph 5(c)(i) (if any) is less than the amount of attributable income mentioned in subparagraph 5(c)(ii).\n\n(2) The Commission must consider determining that the difference between the amounts referred to in paragraph (1)(b) is excluded income in relation to the attributable income of the individual mentioned in paragraph 5(c).\n\n## Division 2.2 No double counting—one member of couple is not attributable stakeholder\n\n### 9 Distribution made to partner who is not attributable stakeholder\n\n(1) This section applies if, in respect of an individual, the following circumstances exist:\n\n(a) the individual is a member of a couple;\n\n(b) the individual is an attributable stakeholder of a company or trust, but the individual’s partner is not an attributable stakeholder of the company or trust;\n\n(c) during a derivation period of the company or trust, the individual:\n\n(i) may, or may not, receive a distribution from the company or trust; but\n\n(ii) is taken to receive an amount of attributable income during the attribution period that relates to the derivation period;\n\n(d) during the derivation period mentioned in paragraph (c), the individual’s partner receives a distribution from the company or trust.\n\n(2) The Commission must consider determining that an amount equal to the amount of the distribution received by the partner is excluded income in relation to the attributable stakeholder.\n\n## Division 2.3 Investor makes genuine transfer and receives distribution or credit\n\n### 10 Application of Division 2.3\n\nThis Division applies if:\n\n(a) an individual (the investor) makes a genuine transfer of capital to a company or trust of which the investor is not an attributable stakeholder; and\n\n(b) during a derivation period of the company or trust, the investor receives a distribution from the company or trust.\n\n### 11 Genuine transfer of capital\n\nFor section 10, a transfer of capital is a genuine transfer of capital if:\n\n(a) the investor receives, as consideration for the transfer, shares in the company, or units in the trust, of a value that is equivalent to the value of the capital transferred; and\n\n(b) the investor has a legal or equitable right to a share of the capital of the company or trust; and\n\n(c) the investor has a legal or equitable right to receive dividends or distributions in accordance with the constituent documents of the company or the terms of the trust; and\n\n(d) the investor is over 18 years of age.\n\n### 12 Excluded income\n\n(1) This section applies if:\n\n(a) an individual who is an attributable stakeholder of a company or trust is taken to receive attributable income in accordance with subsection 52ZZK(1) of the Act; and\n\n(b) the attributable income of the individual is taken to include additional ordinary income in the circumstances mentioned in section 10.\n\n(2) The Commission must consider determining that the amount of additional ordinary income worked out in accordance with subsection (3) is excluded income in relation to the attributable stakeholder.\n\n(3) The amount of excluded income is worked out by multiplying the amount of the distribution mentioned in paragraph 10(b) by the income attribution percentage of the attributable stakeholder.\n\n  \n\n# Part 3 Determination about excluded income (Act, s 52ZZL)\n\n## Division 3.1 No double counting of attributed income—general\n\n### 13 No double counting of attributed income—general\n\n(1) For paragraphs 52ZZL(1)(d) and (e) and (2)(d) and (e) of the Act, the Commission must have regard to the ordinary income of the individual received during the relevant attribution period and consider if the individual is an attributable stakeholder of:\n\n(a) more than 1 controlled private company; or\n\n(b) more than 1 controlled private trust; or\n\n(c) at least 1 controlled private company and 1 controlled private trust.\n\n(2) For paragraphs 52ZZL(1)(d) and (e) and (2)(d) and (e) of the Act, the Commission must also consider if a company or trust mentioned in subsection (1) has derived an amount, directly or indirectly, by way of dividend or other distribution from another controlled private company or controlled private trust.\n\n### 14 No double counting if ordinary income significantly diminished\n\n(1) This section applies if:\n\n(a) a company or trust makes a distribution to an individual who is an attributable stakeholder of the company or trust; and\n\n(b) the individual would, but for this section, be taken to receive an amount of ordinary income over a period of 12 months in accordance with section 46A of the Act; and\n\n(c) the ordinary income of the individual derived from the company or trust during an attribution period has ceased, or is significantly diminished, because the company or trust:\n\n(i) has been wound-up or otherwise ceased to exist; or\n\n(ii) has been subject to circumstances adversely affecting its profitability.\n\n(2) For paragraphs 52ZZL(1)(d) and (e) and (2)(d) and (e) of the Act, the Commission must consider:\n\n(a) whether, in all the circumstances, the application of section 46A of the Act would be unfair or unreasonable in relation to the individual; and\n\n(b) if section 46A applies unfairly or unreasonably in relation to the individual, determining that the ordinary income of the individual does not include the whole or part of the amount or value distributed to the individual.\n\n## Division 3.2 Distributions by companies\n\n### 15 No double counting of attributed income—distribution by company to all attributable stakeholders\n\n(1) This section applies if:\n\n(a) during a particular derivation period of a company, an individual receives a distribution of capital from the company (the distribution); and\n\n(b) the individual is an attributable stakeholder of the company during an attribution period that corresponds with the derivation period of the company; and\n\n(c) the distribution made to the attributable stakeholder is part of a distribution to all attributable stakeholders of the company (the total distribution); and\n\n(d) the proportion that the distribution to each attributable stakeholder bears to the total distribution, expressed as a percentage, is the same as each attributable stakeholder’s asset attribution percentage in relation to the company.\n\n(2) For paragraph 52ZZL(1)(d) of the Act, the Commission must consider determining that the ordinary income of the individual received during the attribution period does not include the distribution if, but for this section, the amount or value of the distribution would be included in the ordinary income of the individual for that period.\n\n(3) For paragraph 52ZZL(1)(e) of the Act, the Commission must consider determining that the ordinary income of the individual received during the attribution period does not include any part of the amount or value of the distribution if, but for this section, any part of the amount or value of the distribution would be included in the ordinary income of the individual for that period.\n\n### 16 No double counting of attributed income—other distributions by a company\n\n(1) This section applies if:\n\n(a) during a particular derivation period of a company, an individual receives a distribution of capital or profits from the company (the distribution); and\n\n(b) the individual is an attributable stakeholder of the company during an attribution period that corresponds with the derivation period of the company; and\n\n(c) the distribution is made in circumstances other than those mentioned in section 14 and paragraphs 15(1)(c) and (d); and\n\n(d) the individual is taken to receive additional ordinary income during that attribution period in accordance with subsection 52ZZK(1) of the Act.\n\n(2) For paragraph 52ZZL(1)(d) of the Act, if the amount of the distribution is less than, or equal to, the additional ordinary income that the individual is taken to receive in accordance with subsection 52ZZK(1) of the Act during the attribution period, the Commission must consider determining that the ordinary income of the individual received during that period does not include the amount of that distribution.\n\n(3) For paragraph 52ZZL(1)(e) of the Act, if the amount of the distribution exceeds the additional ordinary income that the individual is taken to receive in accordance with subsection 52ZZK(1) of the Act during the attribution period, the Commission must consider determining that the ordinary income of the individual received during that period does not include so much of the amount of the distribution that equals the additional ordinary income that the individual is taken to receive in accordance with subsection 52ZZK(1) of the Act.\n\n## Division 3.3 Distributions by trusts\n\n### 17 No double counting of attributed income—distribution by trust to all attributable stakeholders\n\n(1) This section applies if:\n\n(a) during a particular derivation period of a trust, an individual receives a distribution of corpus from the trust (the distribution); and\n\n(b) the individual is an attributable stakeholder of the trust during an attribution period that corresponds with the derivation period of the trust; and\n\n(c) the distribution made to the attributable stakeholder is part of a distribution to all attributable stakeholders of the trust (the total distribution); and\n\n(d) the proportion that the distribution to each attributable stakeholder bears to the total distribution, expressed as a percentage, is the same as the attributable stakeholder’s asset attribution percentage in relation to the trust.\n\n(2) For paragraph 52ZZL(2)(d) of the Act, the Commission must consider determining that the ordinary income of the individual received during the attribution period does not include the amount or value of the distribution if, but for this section, the distribution would be included in the ordinary income of the individual for that period.\n\n(3) For paragraph 52ZZL(2)(e) of the Act, the Commission must consider determining that the ordinary income of the individual received during the attribution period does not include any part of the amount or value of the distribution if, but for this section, any part of the amount or value of the distribution would be included in the ordinary income of the individual for that period.\n\n### 18 No double counting of attributed income—other distributions by trust\n\n(1) This section applies if:\n\n(a) during a particular derivation period of a trust, an individual receives a distribution of corpus or income from the trust (the distribution); and\n\n(b) the individual is an attributable stakeholder of the trust during an attribution period that corresponds with the derivation period of the trust; and\n\n(c) the distribution is made in circumstances other than those mentioned in section 14 and paragraphs 17(1)(c) and (d); and\n\n(d) the individual is taken to receive additional ordinary income, during that attribution period, in accordance with subsection 52ZZK(1) of the Act.\n\n(2) For paragraph 52ZZL(2)(d) of the Act, if the amount of the distribution is less than, or equal to, the additional ordinary income that the individual is taken to receive in accordance with subsection 52ZZK(1) of the Act during the attribution period, the Commission must consider determining that the ordinary income of the individual received during that period does not include the amount of that distribution.\n\n(3) For paragraph 52ZZL(2)(e) of the Act, if the amount of the distribution exceeds the additional ordinary income that the individual is taken to receive in accordance with subsection 52ZZK(1) of the Act during the attribution period, the Commission must consider determining that the ordinary income of the individual received during that period does not include so much of the amount of the distribution that equals the additional ordinary income that the individual is taken to receive in accordance with subsection 52ZZK(1) of the Act.\n\n  \n\n# Part 4 Determination of derivation period (Act, s 52ZZP)\n\n### 19 Derivation period must reflect typical income\n\n(1) This section applies to the determination of a specified period as the derivation period of a specified company or trust in relation to an attributable stakeholder of the company or trust.\n\n(2) The derivation period must be a period that is determined having regard to the following matters:\n\n(a) the ordinary income of the company or trust for a derivation period referred to in subsection 52ZZP(1) of the Act;\n\n(b) the ordinary income of the company or trust for any other period or periods that may reasonably be regarded as typical earning periods for the company or trust;\n\n(c) any circumstances affecting the company or trust during the periods referred to in paragraphs (a) and (b);\n\n(d) whether, having regard to any circumstances referred to in paragraph (c), it is appropriate to use a derivation period different from the derivation period referred to in subsection 52ZZP(1) of the Act.\n\n  \n\n# Part 5 Determination of attribution period (Act, s 52ZZQ)\n\n### 20 Attribution period must reflect typical circumstances\n\n(1) This section applies to the determination of an attribution period in relation to:\n\n(a) a specified individual who is an attributable stakeholder of a specified company or trust; and\n\n(b) a specified derivation period of the company or trust.\n\n(2) The attribution period must be a period that is determined having regard to the following matters:\n\n(a) the ordinary income of the attributable stakeholder for the derivation period;\n\n(b) the ordinary income of the attributable stakeholder for any other period or periods that may reasonably be regarded as typical earning periods for the attributable stakeholder;\n\n(c) any circumstances affecting the attributable stakeholder during the periods referred to in paragraphs (a) and (b);\n\n(d) any circumstances that may reasonably be regarded as likely to affect the ordinary income of the attributable stakeholder.","sortOrder":29},{"sectionNumber":"19","sectionType":"division","heading":"Derivation period must reflect typical income","content":"### 19 Derivation period must reflect typical income\n\n(1) This section applies to the determination of a specified period as the derivation period of a specified company or trust in relation to an attributable stakeholder of the company or trust.\n\n(2) The derivation period must be a period that is determined having regard to the following matters:\n\n(a) the ordinary income of the company or trust for a derivation period referred to in subsection 52ZZP(1) of the Act;\n\n(b) the ordinary income of the company or trust for any other period or periods that may reasonably be regarded as typical earning periods for the company or trust;\n\n(c) any circumstances affecting the company or trust during the periods referred to in paragraphs (a) and (b);\n\n(d) whether, having regard to any circumstances referred to in paragraph (c), it is appropriate to use a derivation period different from the derivation period referred to in subsection 52ZZP(1) of the Act.","sortOrder":30},{"sectionNumber":"Part 5","sectionType":"part","heading":"Determination of attribution period (Act, s 52ZZQ)","content":"# Part 1 Preliminary\n\n### 1 Name\n\nThis instrument is the Veterans’ Entitlements (Attribution of Income) Principles 2025.\n\n### 2 Commencement\n\nThis instrument commences on the day after the day it is registered.\n\n### 3 Authority\n\nThis instrument is made under section 52ZZZQ of the Veterans’ Entitlements Act 1986.\n\n### 3A Repeal\n\nSchedule 4 to the Veterans’ Affairs (Legislative Instrument Re-making Exercise) Instrument 2014 is repealed.\n\n### 4 Definitions\n\n> Note: A number of expressions used in this instrument are defined in the Act, including the following:\n\n    (a) attributable stakeholder – of a company or trust (see section 52ZZJ);\n    (b) Commission (see section 5Q);\n    (c) company (see section 52ZO);\n    (d) member of a couple (see section 5E);\n    (e) partner (see section 5E);\n    (f) trust (see section 52ZO of the Act).\n  In this instrument, unless the contrary intention appears:\n\n> Act means the Veterans’ Entitlements Act 1986.\n\n> attributable income, in relation to an individual who is an attributable stakeholder of a company or trust, means income that the individual is taken to receive during an attribution period of the company or trust.\n\n> distribution, in relation to a trust, includes an amount credited by a trust to a beneficiary of the trust.\n\n### 4A Purpose\n\n  This instrument sets out decision-making principles with which the Commission must comply in making the following determinations:\n\n(a) a determination under subsection 52ZZK(2) of the Act that, for the purposes of the application of subsection 52ZZK(1) of the Act to a specified individual and a specified company or trust, a specified amount is excluded income;\n\n(b) a determination under section 52ZZL of the Act that the ordinary income of an individual does not include the amount or value of a distribution, or a part of the amount or value of a distribution, to the individual by a company or trust;\n\n(c) a determination under section 52ZZP(3) of the Act that a specified period is a derivation period of a company or trust for the purposes of the application of Subdivision G of Division 11A of Part IIIB of the Act to a specified individual and to a specified company or trust;\n\n(d) a determination under section 52ZZQ(1) of the Act that a specified period is an attribution period for the purposes of the application of Division 11A of Part IIIB of the Act to a specified individual and to a specified company or trust.\n\n  \n\n# Part 2 Determination about excluded income (Act, s 52ZZK)\n\n## Division 2.1 No double counting—both members of couple are attributable stakeholders of company or trust\n\n### 5 Application of Division 2.1\n\n  This Division applies if, in respect of an individual, the following circumstances exist:\n\n(a) the individual is a member of a couple;\n\n(b) the individual and the individual’s partner are attributable stakeholders of a company or trust;\n\n(c) during a derivation period of the company or trust, the individual:\n\n(i) may, or may not, receive a distribution from the company or trust; but\n\n(ii) is taken to receive an amount of attributable income during the attribution period that relates to the derivation period;\n\n(d) during the derivation period mentioned in paragraph (c), the individual’s partner:\n\n(i) receives a distribution from the company or trust; and\n\n(ii) is taken to receive an amount of attributable income during the attribution period that relates to the derivation period.\n\n### 6 Sum of distributions is the same as sum of attributable income\n\n  (1) This section applies if:\n\n(a) the sum of the distributions mentioned in subparagraphs 5(c)(i) (if any) and 5(d)(i) is the same as the sum of the attributable income mentioned in subparagraphs 5(c)(ii) and 5(d)(ii); but\n\n(b) the amount of the distribution mentioned in subparagraph 5(d)(i) is greater than the amount of attributable income mentioned in subparagraph 5 (d)(ii).\n\n  (2) The Commission must consider determining that the difference between the amounts referred to in paragraph (1)(b) is excluded income in relation to the attributable income of the individual mentioned in paragraph 5(c).\n\n### 7 Sum of distributions is less than sum of attributable income\n\n(1) This section applies if:\n\n(a) the sum of the distributions mentioned in subparagraphs 5 (c)(i) (if any) and 5(d)(i) is less than the sum of the attributable income mentioned in subparagraphs 5(c)(ii) and 5(d)(ii); but\n\n(b) the amount of the distribution mentioned in subparagraph 5(d)(i) is greater than the amount of attributable income mentioned in subparagraph 5(d)(ii).\n\n(2) The Commission must consider determining that the difference between the amounts referred to in paragraph (1)(b) is excluded income in relation to the attributable income of the individual mentioned in paragraph 5(c).\n\n### 8 Sum of distributions is greater than sum of attributable income\n\n(1) This section applies if:\n\n(a) the sum of the distributions mentioned in subparagraphs 5(c)(i) (if any) and 5(d)(i) is greater than the sum of the attributable income mentioned in subparagraphs 5(c)(ii) and 5(d)(ii); but\n\n(b) the amount of the distribution mentioned in subparagraph 5(c)(i) (if any) is less than the amount of attributable income mentioned in subparagraph 5(c)(ii).\n\n(2) The Commission must consider determining that the difference between the amounts referred to in paragraph (1)(b) is excluded income in relation to the attributable income of the individual mentioned in paragraph 5(c).\n\n## Division 2.2 No double counting—one member of couple is not attributable stakeholder\n\n### 9 Distribution made to partner who is not attributable stakeholder\n\n(1) This section applies if, in respect of an individual, the following circumstances exist:\n\n(a) the individual is a member of a couple;\n\n(b) the individual is an attributable stakeholder of a company or trust, but the individual’s partner is not an attributable stakeholder of the company or trust;\n\n(c) during a derivation period of the company or trust, the individual:\n\n(i) may, or may not, receive a distribution from the company or trust; but\n\n(ii) is taken to receive an amount of attributable income during the attribution period that relates to the derivation period;\n\n(d) during the derivation period mentioned in paragraph (c), the individual’s partner receives a distribution from the company or trust.\n\n(2) The Commission must consider determining that an amount equal to the amount of the distribution received by the partner is excluded income in relation to the attributable stakeholder.\n\n## Division 2.3 Investor makes genuine transfer and receives distribution or credit\n\n### 10 Application of Division 2.3\n\nThis Division applies if:\n\n(a) an individual (the investor) makes a genuine transfer of capital to a company or trust of which the investor is not an attributable stakeholder; and\n\n(b) during a derivation period of the company or trust, the investor receives a distribution from the company or trust.\n\n### 11 Genuine transfer of capital\n\nFor section 10, a transfer of capital is a genuine transfer of capital if:\n\n(a) the investor receives, as consideration for the transfer, shares in the company, or units in the trust, of a value that is equivalent to the value of the capital transferred; and\n\n(b) the investor has a legal or equitable right to a share of the capital of the company or trust; and\n\n(c) the investor has a legal or equitable right to receive dividends or distributions in accordance with the constituent documents of the company or the terms of the trust; and\n\n(d) the investor is over 18 years of age.\n\n### 12 Excluded income\n\n(1) This section applies if:\n\n(a) an individual who is an attributable stakeholder of a company or trust is taken to receive attributable income in accordance with subsection 52ZZK(1) of the Act; and\n\n(b) the attributable income of the individual is taken to include additional ordinary income in the circumstances mentioned in section 10.\n\n(2) The Commission must consider determining that the amount of additional ordinary income worked out in accordance with subsection (3) is excluded income in relation to the attributable stakeholder.\n\n(3) The amount of excluded income is worked out by multiplying the amount of the distribution mentioned in paragraph 10(b) by the income attribution percentage of the attributable stakeholder.\n\n  \n\n# Part 3 Determination about excluded income (Act, s 52ZZL)\n\n## Division 3.1 No double counting of attributed income—general\n\n### 13 No double counting of attributed income—general\n\n(1) For paragraphs 52ZZL(1)(d) and (e) and (2)(d) and (e) of the Act, the Commission must have regard to the ordinary income of the individual received during the relevant attribution period and consider if the individual is an attributable stakeholder of:\n\n(a) more than 1 controlled private company; or\n\n(b) more than 1 controlled private trust; or\n\n(c) at least 1 controlled private company and 1 controlled private trust.\n\n(2) For paragraphs 52ZZL(1)(d) and (e) and (2)(d) and (e) of the Act, the Commission must also consider if a company or trust mentioned in subsection (1) has derived an amount, directly or indirectly, by way of dividend or other distribution from another controlled private company or controlled private trust.\n\n### 14 No double counting if ordinary income significantly diminished\n\n(1) This section applies if:\n\n(a) a company or trust makes a distribution to an individual who is an attributable stakeholder of the company or trust; and\n\n(b) the individual would, but for this section, be taken to receive an amount of ordinary income over a period of 12 months in accordance with section 46A of the Act; and\n\n(c) the ordinary income of the individual derived from the company or trust during an attribution period has ceased, or is significantly diminished, because the company or trust:\n\n(i) has been wound-up or otherwise ceased to exist; or\n\n(ii) has been subject to circumstances adversely affecting its profitability.\n\n(2) For paragraphs 52ZZL(1)(d) and (e) and (2)(d) and (e) of the Act, the Commission must consider:\n\n(a) whether, in all the circumstances, the application of section 46A of the Act would be unfair or unreasonable in relation to the individual; and\n\n(b) if section 46A applies unfairly or unreasonably in relation to the individual, determining that the ordinary income of the individual does not include the whole or part of the amount or value distributed to the individual.\n\n## Division 3.2 Distributions by companies\n\n### 15 No double counting of attributed income—distribution by company to all attributable stakeholders\n\n(1) This section applies if:\n\n(a) during a particular derivation period of a company, an individual receives a distribution of capital from the company (the distribution); and\n\n(b) the individual is an attributable stakeholder of the company during an attribution period that corresponds with the derivation period of the company; and\n\n(c) the distribution made to the attributable stakeholder is part of a distribution to all attributable stakeholders of the company (the total distribution); and\n\n(d) the proportion that the distribution to each attributable stakeholder bears to the total distribution, expressed as a percentage, is the same as each attributable stakeholder’s asset attribution percentage in relation to the company.\n\n(2) For paragraph 52ZZL(1)(d) of the Act, the Commission must consider determining that the ordinary income of the individual received during the attribution period does not include the distribution if, but for this section, the amount or value of the distribution would be included in the ordinary income of the individual for that period.\n\n(3) For paragraph 52ZZL(1)(e) of the Act, the Commission must consider determining that the ordinary income of the individual received during the attribution period does not include any part of the amount or value of the distribution if, but for this section, any part of the amount or value of the distribution would be included in the ordinary income of the individual for that period.\n\n### 16 No double counting of attributed income—other distributions by a company\n\n(1) This section applies if:\n\n(a) during a particular derivation period of a company, an individual receives a distribution of capital or profits from the company (the distribution); and\n\n(b) the individual is an attributable stakeholder of the company during an attribution period that corresponds with the derivation period of the company; and\n\n(c) the distribution is made in circumstances other than those mentioned in section 14 and paragraphs 15(1)(c) and (d); and\n\n(d) the individual is taken to receive additional ordinary income during that attribution period in accordance with subsection 52ZZK(1) of the Act.\n\n(2) For paragraph 52ZZL(1)(d) of the Act, if the amount of the distribution is less than, or equal to, the additional ordinary income that the individual is taken to receive in accordance with subsection 52ZZK(1) of the Act during the attribution period, the Commission must consider determining that the ordinary income of the individual received during that period does not include the amount of that distribution.\n\n(3) For paragraph 52ZZL(1)(e) of the Act, if the amount of the distribution exceeds the additional ordinary income that the individual is taken to receive in accordance with subsection 52ZZK(1) of the Act during the attribution period, the Commission must consider determining that the ordinary income of the individual received during that period does not include so much of the amount of the distribution that equals the additional ordinary income that the individual is taken to receive in accordance with subsection 52ZZK(1) of the Act.\n\n## Division 3.3 Distributions by trusts\n\n### 17 No double counting of attributed income—distribution by trust to all attributable stakeholders\n\n(1) This section applies if:\n\n(a) during a particular derivation period of a trust, an individual receives a distribution of corpus from the trust (the distribution); and\n\n(b) the individual is an attributable stakeholder of the trust during an attribution period that corresponds with the derivation period of the trust; and\n\n(c) the distribution made to the attributable stakeholder is part of a distribution to all attributable stakeholders of the trust (the total distribution); and\n\n(d) the proportion that the distribution to each attributable stakeholder bears to the total distribution, expressed as a percentage, is the same as the attributable stakeholder’s asset attribution percentage in relation to the trust.\n\n(2) For paragraph 52ZZL(2)(d) of the Act, the Commission must consider determining that the ordinary income of the individual received during the attribution period does not include the amount or value of the distribution if, but for this section, the distribution would be included in the ordinary income of the individual for that period.\n\n(3) For paragraph 52ZZL(2)(e) of the Act, the Commission must consider determining that the ordinary income of the individual received during the attribution period does not include any part of the amount or value of the distribution if, but for this section, any part of the amount or value of the distribution would be included in the ordinary income of the individual for that period.\n\n### 18 No double counting of attributed income—other distributions by trust\n\n(1) This section applies if:\n\n(a) during a particular derivation period of a trust, an individual receives a distribution of corpus or income from the trust (the distribution); and\n\n(b) the individual is an attributable stakeholder of the trust during an attribution period that corresponds with the derivation period of the trust; and\n\n(c) the distribution is made in circumstances other than those mentioned in section 14 and paragraphs 17(1)(c) and (d); and\n\n(d) the individual is taken to receive additional ordinary income, during that attribution period, in accordance with subsection 52ZZK(1) of the Act.\n\n(2) For paragraph 52ZZL(2)(d) of the Act, if the amount of the distribution is less than, or equal to, the additional ordinary income that the individual is taken to receive in accordance with subsection 52ZZK(1) of the Act during the attribution period, the Commission must consider determining that the ordinary income of the individual received during that period does not include the amount of that distribution.\n\n(3) For paragraph 52ZZL(2)(e) of the Act, if the amount of the distribution exceeds the additional ordinary income that the individual is taken to receive in accordance with subsection 52ZZK(1) of the Act during the attribution period, the Commission must consider determining that the ordinary income of the individual received during that period does not include so much of the amount of the distribution that equals the additional ordinary income that the individual is taken to receive in accordance with subsection 52ZZK(1) of the Act.\n\n  \n\n# Part 4 Determination of derivation period (Act, s 52ZZP)\n\n### 19 Derivation period must reflect typical income\n\n(1) This section applies to the determination of a specified period as the derivation period of a specified company or trust in relation to an attributable stakeholder of the company or trust.\n\n(2) The derivation period must be a period that is determined having regard to the following matters:\n\n(a) the ordinary income of the company or trust for a derivation period referred to in subsection 52ZZP(1) of the Act;\n\n(b) the ordinary income of the company or trust for any other period or periods that may reasonably be regarded as typical earning periods for the company or trust;\n\n(c) any circumstances affecting the company or trust during the periods referred to in paragraphs (a) and (b);\n\n(d) whether, having regard to any circumstances referred to in paragraph (c), it is appropriate to use a derivation period different from the derivation period referred to in subsection 52ZZP(1) of the Act.\n\n  \n\n# Part 5 Determination of attribution period (Act, s 52ZZQ)\n\n### 20 Attribution period must reflect typical circumstances\n\n(1) This section applies to the determination of an attribution period in relation to:\n\n(a) a specified individual who is an attributable stakeholder of a specified company or trust; and\n\n(b) a specified derivation period of the company or trust.\n\n(2) The attribution period must be a period that is determined having regard to the following matters:\n\n(a) the ordinary income of the attributable stakeholder for the derivation period;\n\n(b) the ordinary income of the attributable stakeholder for any other period or periods that may reasonably be regarded as typical earning periods for the attributable stakeholder;\n\n(c) any circumstances affecting the attributable stakeholder during the periods referred to in paragraphs (a) and (b);\n\n(d) any circumstances that may reasonably be regarded as likely to affect the ordinary income of the attributable stakeholder.","sortOrder":31},{"sectionNumber":"20","sectionType":"division","heading":"Attribution period must reflect typical circumstances","content":"### 20 Attribution period must reflect typical circumstances\n\n(1) This section applies to the determination of an attribution period in relation to:\n\n(a) a specified individual who is an attributable stakeholder of a specified company or trust; and\n\n(b) a specified derivation period of the company or trust.\n\n(2) The attribution period must be a period that is determined having regard to the following matters:\n\n(a) the ordinary income of the attributable stakeholder for the derivation period;\n\n(b) the ordinary income of the attributable stakeholder for any other period or periods that may reasonably be regarded as typical earning periods for the attributable stakeholder;\n\n(c) any circumstances affecting the attributable stakeholder during the periods referred to in paragraphs (a) and (b);\n\n(d) any circumstances that may reasonably be regarded as likely to affect the ordinary income of the attributable stakeholder.","sortOrder":32}],"analysis":{"flash_summary_failed":{"failed":true,"reason":"Unauthenticated. Configure AI_GATEWAY_API_KEY or use a provider module. Learn more: https://ai-sdk.dev/unauthenticated-ai-gateway","source":"analysis-cron"},"kimi_summary":{"_metrics":{"completionTokens":691},"content_quality":"ok","complexity_score":8,"scope_assessment":{"changed":false,"description":"This is a straightforward re-making of existing legislative principles under the Veterans' Affairs (Legislative Instrument Re-making Exercise) Instrument 2014. It repeals Schedule 4 of that instrument and replaces it with substantively similar provisions. The scope remains limited to attribution of income rules for veterans with interests in private companies and trusts, consistent with the original purpose."},"complexity_factors":["Extensive cross-referencing to the Veterans' Entitlements Act 1986 (sections 52ZZJ, 52ZZK, 52ZZL, 52ZZP, 52ZZQ, 5Q, 5E, 52ZO, 46A)","Multiple defined terms requiring external reference ('attributable stakeholder', 'derivation period', 'attribution period', 'asset attribution percentage', 'income attribution percentage')","Nested conditional logic with multiple preconditions in sections 5-9 (up to 4 paragraph conditions with sub-subparagraphs)","Mathematical calculations required for income adjustments (differences between sums, percentages, multiplications)","Parallel structure for companies and trusts requiring careful distinction (Divisions 3.2 and 3.3 mirror each other with subtle differences)","Temporal alignment requirements between derivation periods and attribution periods","Discretionary decision-making framework ('the Commission must consider determining') rather than automatic rules","Repeal and replacement of previous instrument creating transitional complexity"],"plain_english_summary":"This instrument instructs the Department of Veterans' Affairs on how to treat income from private companies and trusts when assessing veterans’ entitlements, preventing the same income being counted more than once. It affects veterans and their partners with interests or distributions from such entities, clarifying when distributions should be excluded so benefits aren’t reduced by artificially inflated or duplicated attribution."},"flash_summary":{"complexity_score":7,"scope_assessment":{"changed":false,"description":"This instrument is a decision‑making principles instrument that replaces an earlier schedule (Schedule 4 of the 2014 re‑making Instrument). It retains the original legislative purpose — guiding the Commission in attributing and excluding income under the Act and selecting appropriate derivation/attribution periods — rather than expanding substantive coverage. It adds clearer, scenario‑based guidance (for couples, investors making \"genuine\" capital transfers, and period selection) but does not broaden the underlying statutory powers or create new categories of beneficiaries; therefore it does not represent a material change in scope beyond clarifying and re‑stating decision criteria."},"complexity_factors":["20 numbered substantive sections (1–20) plus multiple divisions and subsections","Multiple cross‑references to the Veterans' Entitlements Act 1986 (notably ss 52ZZK, 52ZZL, 52ZZP, 52ZZQ and 46A) requiring cross‑instrument interpretation","Several defined terms referenced from the Act (attributable stakeholder, Commission, company, trust, partner/member of a couple) and three local definitions (Act; attributable income; distribution) increasing interdependence with the parent Act","Nested conditional logic across Divisions 2.1–2.3 and 3.1–3.3 with alternative branches depending on sums of distributions v attributable income (sections 6–8, 15–18)","A formulaic calculation in section 12(3) (multiplication by \"income attribution percentage\") and proportional calculations in sections 15 and 17 (asset attribution percentages)","Fact‑intensive and discretionary determinations required (\"must consider determining\" language used repeatedly) rather than bright‑line rules","Subjective assessment factors for period selection (sections 19–20) requiring evaluation of \"typical\" earning periods and other circumstances","Repeal and replacement element (section 3A) means comparative interpretation against prior instrument may be needed","Interaction with section 46A of the Act (section 14) introduces an additional statutory test of \"unfair or unreasonable\", which is open‑ended","Multiple stakeholder scenarios (both partners attributable; one partner not attributable; third‑party investor transfers) that each have bespoke rules to apply"],"plain_english_summary":"**What this instrument does (mechanically)\n\n- This instrument (the \"Principles 2025\") tells the Repatriation Commission (the Commission) how to make certain decisions required by the Veterans' Entitlements Act 1986 about income that is \"attributed\" from companies and trusts to individual veteran stakeholders.  It is a set of decision‑making principles — not new substantive benefit rules — that the Commission must follow when it:  (a) decides that part of an attributable amount should be treated as \"excluded income\" (s 52ZZK of the Act); (b) decides whether an individual’s ordinary income should exclude the amount or value of a distribution received from a company or trust (s 52ZZL); and (c) decides what time periods to use as the company/trust \"derivation period\" or the individual’s \"attribution period\" for applying the attribution rules (ss 52ZZP and 52ZZQ).  (See instrument purpose, section 4A.)\n\n- The instrument also repeals Schedule 4 of the 2014 Legislative Instrument re‑making exercise (see section 3A).\n\nWho is affected\n\n- Primary decision‑maker: the Repatriation Commission — the instrument constrains and guides how the Commission makes the specified determinations (see sections 4A, 6, 12, 13–20).\n\n- Individuals who are \"attributable stakeholders\" of private companies or trusts (this includes many small‑business owners, unit‑holders, beneficiaries and their partners or spouses) because the instrument governs how amounts distributed by those entities are to be treated when the Commission attributes income for veterans' entitlements purposes (see defined expressions noted at section 4 and the substantive divisions in Parts 2–5).\n\n- Companies and trusts (particularly controlled private companies and private trusts) and their advisers, because the instrument determines how distributions, credits and transfers of capital will be treated when the Commission calculates attributable income and possible exclusions (see Divisions 2.1–2.3 and 3.2–3.3).\n\nWhy it matters (official purpose claim and practical consequences)\n\n- Official purpose claim: the instrument claims to provide consistent decision‑making principles to avoid \"double counting\" of income that is both distributed and attributed, and to ensure derivation/attribution periods reflect \"typical\" earning circumstances (see section 4A and Parts 4–5).\n\n- Practical test of that claim: the instrument does that by setting out concrete scenarios where the Commission \"must consider\" excluding amounts from an individual's ordinary income (for example, when both partners are attributable stakeholders and distributions and attributed amounts overlap — Divisions 2.1 and 3.1–3.3), when one partner (not an attributable stakeholder) receives a distribution (Division 2.2), and when a third‑party investor makes a \"genuine transfer of capital\" and later receives a distribution (Division 2.3).  It also lists factors the Commission must take into account when picking suitable derivation and attribution periods (sections 19–20).\n\nCosts, incentives and trade‑offs (mechanics, who pays, who decides, likely behaviour changes)\n\n- Who decides: the Commission has primary decision authority. The instrument is phrased largely in mandatory consideration language — e.g. \"must consider determining\" — which requires the Commission to evaluate specified matters but preserves discretion over the actual determination (see repeated phrasing in Divisions 2 and 3 and sections 19–20).\n\n- Who pays / who bears administrative cost: affected individuals (veterans and their partners) and the companies/trusts that provide the underlying distributions will bear the compliance and evidentiary burden. To obtain favourable exclusions, claimants or entities will need to provide evidence of distributions, attribution percentages, asset attribution percentages, the bona fides of capital transfers, and factual material about typical earning periods and adverse circumstances (see sections 6–8, 11–12, 15–18, 19–20).\n\n- Behaviour incentives: the instrument creates incentives for claimants and their advisers to document distributions, ownership percentages and the commercial character of capital transfers (the instrument defines \"genuine transfer of capital\" and sets out the consequence if that test is met — see section 11 and 12(3)).  It may reduce the incentive for the Commission to attribute the same amount twice (the instrument explicitly addresses double‑counting scenarios), but it also leaves scope for contest (because much depends on factual determinations about period selection and whether section 46A of the Act would be \"unfair or unreasonable\" — see section 14).\n\n- Trade‑offs and opportunity costs: the instrument reduces ambiguity about some factual scenarios but increases procedural complexity and evidence requirements for claimants. Companies/trusts and advisers will need to expend time and resources documenting asset attribution percentages and the timing/character of distributions and corporate events (winding up, profit shocks) to support submissions under the Principles.\n\nBureaucratic discretion and implementation risk\n\n- Discretion: many provisions require the Commission to \"consider determining\" certain outcomes rather than mandating a particular calculation in every case. That creates structured discretion: the Commission must address the listed matters but retains judgment on the final decision (see Divisions 2.1–2.3 and 3.1–3.3; sections 19–20).\n\n- Implementation risks: the rules cross‑refer to several parts of the Act (notably ss 52ZZK, 52ZZL, 52ZZP, 52ZZQ and 46A) and depend on factual and accounting determinations (derivation v attribution periods, asset attribution percentages, what counts as corpus v income, whether transfers were \"genuine\").  Those cross‑references and fact‑intensive determinations create potential for disputes, administrative delay and appeals.\n\nEffects on private choice and markets\n\n- Private enterprise: the instrument directly affects the treatment of distributions from closely held private companies and trusts that involve veterans. It does not change corporate law or tax law but changes how distributions and transfers are treated for veterans' entitlements calculations, which may influence how private entities allocate distributions and document capital transactions.\n\n- Competition and prices: the instrument is unlikely to shift broad market prices. Its effects are concentrated (small number of veterans and their connected companies/trusts) and primarily administrative.\n\nConcentrated benefits, diffuse costs, and capture risk\n\n- Concentrated benefits: individuals who can show that distributions should be excluded from their ordinary income (for entitlement calculations) may obtain financial benefit. The instrument primarily benefits those who can marshal clear evidence of distribution timing, attribution percentages and genuine transfers.\n\n- Diffuse costs: record‑keeping, professional advice and potential delays in Commission decisions are costs borne by a wider set of affected stakeholders (companies, trusts, advisers).\n\n- Capture / rent‑seeking risk: the instrument is procedural guidance for the Commission rather than a tax or benefit rate change; capture risk is limited but exists insofar as specialist advisers may be better placed to structure evidence to obtain favourable Commission determinations.\n\nKey provisions cited (examples)\n\n- Repeal of prior Schedule: section 3A.\n- Purpose and scope: section 4A.\n- Couples / double counting rules: Divisions 2.1 (sections 5–8) and 2.2 (section 9).\n- Genuine transfer test and calculation: section 11 and section 12(3).\n- No double counting for ordinary income: Part 3 (sections 13–18).\n- Period selection rules (derivation and attribution): sections 19–20.\n\nBottom line (succinct): this instrument provides the Commission with a structured, scenario‑based set of principles to decide when amounts distributed by private companies and trusts should be excluded from an individual's ordinary income for veterans' entitlements purposes, and how to pick the time periods used in those calculations. It clarifies evidence and factual matters the Commission must consider, increases the factual and documentary burden on claimants and entities, and preserves Commission discretion in many areas."}},"importantCases":[],"_links":{"self":"/api/acts/veterans-entitlements-attribution-of-income-principles-2025","history":"/api/acts/veterans-entitlements-attribution-of-income-principles-2025/history","analysis":"/api/acts/veterans-entitlements-attribution-of-income-principles-2025/analysis","conflicts":"/api/acts/veterans-entitlements-attribution-of-income-principles-2025/conflicts","importantCases":"/api/acts/veterans-entitlements-attribution-of-income-principles-2025/important-cases","documents":"/api/acts/veterans-entitlements-attribution-of-income-principles-2025/documents"}}