Social Security Act 1991

For the purposes of this Part, a company is a controlled private company in relation to an individual if the company is a designated private company and:

the individual passes the control test set out in subsection (2); or

the individual passes the source test set out in subsection (3).

For the purposes of this section, an individual passes the control test in relation to a company if:

the aggregate of:

the direct voting interests in the company that the individual holds; and

the direct voting interests in the company held by associates of the individual;

the aggregate of:

the direct control interests in the company that the individual holds; and

the direct control interests in the company held by associates of the individual;

the company is sufficiently influenced by:

the individual; or

an associate of the individual; or

2 or more entities covered by the preceding subparagraphs; or

the individual (either alone or together with associates) is in a position to exercise control over the company.

For the purposes of this section, an individual passes the source test in relation to a company if:

the individual has transferred property or services to the company after 7.30 pm, by standard time in the Australian Capital Territory, on 9 May 2000; and

the underlying transfer was made for no consideration or for a consideration less than the arm’s length amount in relation to the underlying transfer.

In calculating the aggregate referred to in paragraph (2)(a), a direct voting interest held because of subsection 1207R(2) is not to be counted under subparagraph (2)(a)(i) to the extent to which it is calculated by reference to a direct voting interest in the company that is taken into account under subparagraph (2)(a)(ii).

In calculating the aggregate referred to in paragraph (2)(b), a direct control interest held because of subsection 1207T(4) is not to be counted under subparagraph (2)(b)(i) to the extent to which it is calculated by reference to a direct control interest in the company that is taken into account under subparagraph (2)(b)(ii).