07 Apr 11 Assistant Treasurer's comments on trust income reform
On 6 April 2011, in an address to the Institute of Chartered Accountants' 2011 National Tax Conference, held in Melbourne, Victoria, the Assistant Treasurer and Minister for Financial Services and Superannuation, Bill Shorten said, in relation to the current consultation on possible changes to the concept of trust income, as follows:
"It is important to fix the trust tax law for the approximately 660,000 trusts in Australia, many of which are used to carry on small businesses, such as farms.
Over the last month, organisations...have been consulting with Government on urgent trust changes on trusts - identified by the Board of Taxation.
The overwhelming feedback is that you would like the issue of streaming of capital gains and franked distributions resolved in the short term but you consider that aligning the concept of income of the trust estate with the net income of the trust estate should be addressed as part of the broader review of trusts.
The Government is hearing your counsel and will roll the trust income issue into the broader review to make sure that we get the solution right."