Tracing of interests
If an entity has a direct, indirect or aggregate interest of more than 50% in any corporation, that corporation is grouped with that entity.
For example:
Mr Smith has a controlling interest in Able Pty Ltd of 80%
Mr Smith has an interest in Charlie Pty Ltd of 50%
Mr Smith has an indirect interest in Charlie Pty Ltd of 80% x 40% x 50% = 16%.
Mr Smith has an aggregate interest in Charlie Pty Ltd of 50% +16% = 66%.
Mr Smith has a controlling interest in both Able Pty Ltd and Charlie Pty Ltd.
Able Pty Ltd and Charlie Pty Ltd are a group as Mr Smith has an interest of greater than 50% in both of them.
Bravo Pty Ltd is not part of the group as the level of interest is 50% or less.
Read more about definitions
Exclusion provisions: Under this provision a business may apply for an exclusion from the group.
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