Today at The Tax Institute’s National Convention in Brisbane, the Assistant Treasurer, the Hon Bill Shorten MP, announced during his keynote address, that the Government will clarify the definition of income of a trust estate to allow streaming of capital gains and franking credits. You can view the webstream of the Minister’s keynote address here.
This announcement and the accompanying consultation paper is a very positive outcome as a result of sustained arguments by the Tax Institute over many months. This is the next step in the Government’s commitment to update Australia's trust taxation laws and is extremely welcome. The need for reform in this area has been amplified by the High Court's Bamford decision and more recent Federal Court cases; the Henry Tax review recommendation; the Treasury 'Red Book' advice to the Government; and the continuing difficulties experienced by tax professionals who have long called for reform.
The Tax Institute will be active participants in the consultation with the Government and I encourage you to contact us at Tax Policy with your views.
Please see below for other activities this week.
Robert Jeremenko FTIA