Income Tax Assessment Act 1936

If, under a contract or trust instrument, an OBU manages one or more investments as broker an agent or custodian for, or trustee for the benefit of, a non‑resident, the investment, or all of the investments, constitute a portfolio investment.

The average Australian asset percentage of a portfolio investment is the average, for all months that wholly or partly fall within the investment management period (see subsection 121D(6A) or (6B)), of the monthly Australian asset percentages (see subsection (3)) of all of the things comprising the portfolio investment.

For the purposes of subsection (2), the monthly Australian asset percentage of the things for a month is the percentage of the total value of all of the things comprising the portfolio investment, for the month, that is represented by the value of Australian things.

The percentage in subsection (3) must be worked out according to reasonable accounting practice that applies on the same basis for all months falling wholly or partly within the investment management period.

A thing is an Australian thing at a particular time if:

where the thing is a share in a company—the company is a resident company at the time; or

where the thing is a unit in a unit trust—the unit trust is a resident trust (within the meaning of section 102Q) in relation to the year of income in which the time occurs; or

where the thing is land or a building—the land or building is in Australia; or

where the thing is a loan—the loan was made to an Australian resident; or

in any other case—the thing is located in Australia at the time.