Section 1207W — Social Security Act 1991: Interest in a trust

(1) For the purposes of this Division, if an entity: (a) has entered into a contract to purchase a beneficial interest in the corpus or income of a trust; or (b) has a right, otherwise than by reason of holding an interest in a trust, to have such an interest transferred to the entity or to the entity’s order (whether the right is exercisable presently or in the future) and whether on the fulfilment of a condition or not; or (c) has the right to acquire such an interest under an option (whether the right is exercisable presently or in the future) and whether on the fulfilment of a condition or not; or (d) is otherwise entitled to acquire such an interest; the entity is taken to hold that interest in the trust. (2) An entity is taken to hold an interest in the corpus or income of a trust even if the entity holds the interest jointly with another entity. (3) An interest in the corpus or income of a trust is not to be disregarded only because of: (a) its remoteness; or (b) the manner in which it arose; or (c) the fact that the exercise of a right conferred by the interest is, or is capable of being made, subject to restraint or restriction. (4) In this section: income means income within the ordinary meaning of that expression.