Management of family financial investments does not count as gainful work
45TY Management of family financial investments does not count as gainful work
Unless the Commission otherwise determines, work undertaken by a person is taken not to be gainful work for the purposes of this Part to the extent to which the work consists of the management or administration of one or more financial investments in which any of the following has a legal or equitable interest:
a member of the person’s family group (see subsection (2));
a company that is a family company in relation to the person (see subsection (2));
the trustee or trustees of a trust that is a family trust in relation to the person (see subsection (2)).
Financial investment is defined by subsection 5J(1).
In this section:
family company, in relation to a person, means a company where:
the company is, or its directors are, accustomed or under an obligation, whether formal or informal, to act in accordance with the directions, instructions or wishes of any or all of the members of the person’s family group; or
any or all of the members of the person’s family group are in a position to cast, or control the casting of, more than 50% of the maximum number of votes that may be cast at a general meeting of the company; or
both:
the company has one or more shareholders; and
each shareholder is a member of the person’s family group.
family group, in relation to a person, means the group consisting of the person and the family members of the person. If the person has no family members, the person is taken to be a family group in his or her own right.
Family member is defined by subsection 5L(1).
family trust, in relation to a person, means a trust where a member of the person’s family group benefits, or is capable (whether by the exercise of a power of appointment or otherwise) of benefiting, under the trust.
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