##### 8  Meaning of direct interest holder - \(1\) An entity is a direct interest holder in relation to an asset if the entity: - \(a\) together with any associates of the entity, holds an interest of at least 10% in the asset \(including if any of the interests are held jointly with one or more other entities\); or - \(b\) holds an interest in the asset that puts the entity in a position to directly or indirectly influence or control the asset\. Note: For interests held by trusts, partnerships, superannuation funds and unincorporated foreign companies, see section 53A\. ###### Exemption for moneylenders etc. - \(2\) Subsection \(1\) does not apply to an interest in an asset held by an entity if: - \(a\) the entity holds the interest in the asset: - \(i\) solely by way of security for the purposes of a moneylending agreement; or - \(ii\) solely as a result of enforcing a security for the purposes of a moneylending agreement; and - \(b\) the entity is: - \(i\) the entity \(the first entity\) that entered into the moneylending agreement; or - \(ii\) a subsidiary or holding entity of the first entity; or - \(iii\) a person who is \(alone or with others\) in a position to determine the investments or policy of the first entity; or - \(iv\) a security trustee who holds or acquires the interest on behalf of the first entity; or - \(v\) a receiver, or a receiver and manager, appointed by, or appointed on instructions from, a person or entity mentioned in any of subparagraphs \(i\) to \(iv\)\. - \(3\) A moneylending agreement is: - \(a\) an agreement entered into in good faith, on ordinary commercial terms and in the ordinary course of carrying on a business \(a moneylending business\) of lending money or otherwise providing financial accommodation, except an agreement dealing with any matter unrelated to the carrying on of that business; or - \(b\) if the entity: - \(i\) is carrying on a moneylending business; or - \(ii\) is a subsidiary or holding entity of a corporate entity that is carrying on a moneylending business;   an agreement to acquire an interest arising from a moneylending agreement \(within the meaning of paragraph \(a\)\)\. ###### Exemption for providers of custodial or depository services - \(4\) Subsection \(1\) does not apply to an interest in an asset held by an entity if: - \(a\) the entity is the provider of a custodial or depository service; and - \(b\) the entity holds the interest in the asset solely in the entity’s capacity as the provider of a custodial or depository service; and - \(c\) the holding of the interest does not put the entity in a position to directly or indirectly influence or control the asset\. ###### Exemption for providers of services specified in the rules - \(5\) Subsection \(1\) does not apply to an interest in an asset held by an entity if: - \(a\) the entity is the provider of a service specified in the rules; and - \(b\) the entity holds the interest in the asset solely in the entity’s capacity as the provider of the service; and - \(c\) the holding of the interest does not put the entity in a position to directly or indirectly influence or control the asset\. --- ## Source and attribution Saved copy: C2018A00029 / C2026C00213 / f578e546a17068939a3a5a928474713f844dfae8 Scope: navPoint\_12 Compiled 2026\-06\-04\. This does not establish legal commencement\. Official source: https://www\.legislation\.gov\.au/C2018A00029/2026\-06\-04/2026\-06\-04/text/1/epub/OEBPS/document\_1/document\_1\.html Licence: https://creativecommons\.org/licenses/by/4\.0/ Based on content from the Federal Register of Legislation at 1 October 2026\. For the latest information on Australian Government legislation please go to https://www\.legislation\.gov\.au\. Converted XHTML into Tiptap JSON; recovered lists from paragraph classes; kept literal labels and text\. Print layout is changed\. The Commonwealth Coat of Arms is not covered by the CC BY licence\.