Trust streaming 2011
Publication date: 01 Aug 11
Source: "TAXATION IN AUSTRALIA" JOURNAL ARTICLE
Abstract:
Significant new trust streaming measures were introduced by the Tax Laws Amendment (2011
Measures No. 5) Act 2011, and have effect from 1 July 2010. Trust distributions to be made by 30 June 2011 must take these new rules into account if the trust has derived taxable capital gains or franked distributions. Taxable capital gains and franked distributions for 2011 and beyond are dealt with exclusively under the new streaming provisions.
These provisions were introduced as an interim measure to deal with perceived anomalies in the taxation of capital gains and franked distributions pending a comprehensive review of Div 6 of the Income Tax Assessment Act 1936. They were introduced in haste in view of the pending year end, and it is clear that they will lead to considerable uncertainty among advisers. In this article, the author examines the new measures in detail, and discusses a number of issues which arise.
Author profile:
Ken is a Tax and Commercial Law Partner in the Sydney office of Schurgott Noolan Pty Ltd. Ken has extensive experience in all aspects of tax (including state taxes) as well as business structuring, asset protection, succession planning and trust and estate law. He is a member of the Advisory Panel to the Board of Taxation and is presently heavily engaged in consultation in relation to the reform of the taxation of trusts.
Current at 09 May 2012
Click here to expand/collapse more articles by Ken SCHURGOTT.
Copyright Statement
