(1) An entity covered by item 1.7, 2.1, 9.1 or 9.2 is not exempt from tax unless the entity is a society, association or club that is not carried on for the purpose of profit or gain of its individual members and that:
(a) has a physical presence in Australia and, to that extent, incurs its expenditure and pursues its objectives principally in Australia; or
(b) is a society, association or club that meets the description and requirements in item 1 of the table in section 30-15; or
(c) is a prescribed society, association or club which is located outside Australia and is exempt from income tax in the country in which it is resident;
and the entity satisfies the conditions in subsection (2).
Note: Certain distributions may be disregarded: see section 50-75.
(2) The entity must:
(a) comply with all the substantive requirements in its governing rules; and
(b) apply its income and assets solely for the purpose for which the entity is established.