In media release No 2010/123, issued 3 June 2010, the Assistant Treasurer, Senator Nick Sherry announced the release for public consultation of the exposure draft regulations and explanatory material for extending tax file number (TFN) withholding to closely held trusts, including family trusts.
The exposure draft regulations prescribe:
- details of the administration of the TFN withholding measure, including the withholding rate and payments threshold; and
- the types of trusts that will be excluded from the operation of the measure, including discretionary mutual funds, employee share trusts and solicitor trusts.
The measure commences on 1 July 2010 and submissions should be lodged by 10 June 2010.