Section 1207 — Social Security Act 1991: Simplified outline

The following is a simplified outline of this Part: • This Part sets up a system for the attribution to individuals of the assets and income of private companies and private trusts (sections 1207Y and 1208E). • Attribution starts on 1 January 2002. • For an asset or income to be attributed to an individual: (a) the company must be a designated private company or the trust must be a designated private trust (sections 1207N and 1207P); and (b) the company must be a controlled private company in relation to the individual or the trust must be a controlled private trust in relation to the individual (sections 1207Q and 1207V); and (c) the individual must be an attributable stakeholder of the company or trust (section 1207X). • A company or trust will be a controlled private trust or a controlled private company if the individual passes a control test or a source test. • An individual will not be an attributable stakeholder of a trust if the trust is a concessional primary production trust in relation to the individual. • The asset deprivation rules and the income deprivation rules are modified if attribution happens.