shopping_cart

Your shopping cart is empty

10 Oct 2019 Tax integrity – Improving the taxation of testamentary trusts

In the 2018-19 Budget, the Government announced that it will implement an integrity measure to improve the taxation of testamentary trusts. 

Currently, income received by minors from testamentary trusts is taxed at normal adult rates rather than the higher tax rates that generally apply to minors. However, some taxpayers are able to inappropriately obtain the benefit of this lower tax rate by injecting assets unrelated to the deceased estate into the testamentary trust. 

The Government has prepared exposure draft legislation giving effect to this measure, which will clarify that minors will be taxed at adult marginal tax rates only in respect of income a testamentary trust generates from assets of the deceased estate, or the proceeds of the disposal or investment of these assets. This change will apply from 1 July 2019. 

You can submit responses to this consultation up until 30 October 2019. Find out more here.

Advertising

Media Release Search
Keywords
Eg. TD 2005/D52 ALL words EXACT phrase WITHOUT words Date range
From To