Commonwealth Consolidated Regulations Commonwealth Consolidated Regulations(1) An investment by a person (the investor ) is a complying investment if all of the requirements in this regulation are met.
Description
(2) The investment must consist of one or more of the following:
(a) an investment in a government bond (however described) of the Commonwealth, a State or Territory; or
(b) a direct investment in an Australian proprietary company that meets the following requirements:
(i) the company is not listed on an Australian stock exchange;
(ii) the company has not been established wholly or substantially for the purpose of creating compliance with this paragraph;
(iii) the investment is an ownership interest in the company;
(c) an investment in a managed fund (directly or through an investor directed portfolio service) for a purpose specified by the Minister in an instrument, in writing, for this paragraph.
(3) The funds used to make the investment are:
(a) unencumbered; and
(b) lawfully acquired.
Investor
(4) The investor must be an individual.
(5) The investor must make the investment:
(a) personally; or
(b) with the investor's spouse or de facto partner; or
(c) by means of a company that has issued shares and in which:
(i) the investor holds all of the issued shares; or
(ii) the investor and the investor's spouse or de facto partner hold all of the issued shares; or
(d) by means of a trust:
(i) that is lawfully established; and
(ii) of which:
(A) the investor is the sole trustee; or
(B) the investor and the investor's spouse or de facto partner are the sole trustees; and
(iii) of which:
(A) the investor is the sole beneficiary; or
(B) the investor and the investor's spouse or de facto partner are the sole beneficiaries.
(6) If:
(a) an investor withdraws money from a complying investment, or cancels the investment; and
(b) the investor makes an investment of at least the value of the withdrawn money or cancelled investment in one or more other investments mentioned in subregulation (2); and
(c) no more than 30 days passes between the events mentioned in paragraphs (a) and (b);
the investment is taken not to have ceased to be a complying investment during the period between the events mentioned in paragraphs (a) and (b).