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This leading title examines the considerations that arise in relation to the making of distributions of income out of a typical discretionary trust. Covering the "streaming", anti-avoidance and primary producer trust amendments and much more, this title is an essential resource for trust practitioners looking to understand the ramifications of these distributions.

The online version of Discretionary Trust Distributions has been completely revised as at 1 June 2017. The revised version takes into account recent developments that have occurred, including:

  • the decision of the Full Federal Court in the Thomas case, which concerned the effect of a Supreme Court order relating to the purported distribution of franking credits separately from the dividends;
  • issues that arise out of a power of amendment conferred by a discretionary trust deed, including the extension of the vesting date;
  • the Commissioner’s view of how an amount included in a beneficiary’s assessable income under s 99B ITAA97 is to be treated where the amount had its origin in a capital gain from non-taxable Australian property of a foreign trust; and
  • a taxpayer alert issued by the Commissioner in relation toarrangements designed to exploit the proportionate approach to the taxation of trust income.

The prevalence of the use of discretionary trusts means that practitioners must keep up to date with developments that occur, not only for the purpose of making distributions of income, but also for the purpose of ensuring that the particular trust deed in fact achieves all that is desired.

The publication also considers how the construction of a discretionary trust deed is to be approached, and what may be done if some problem is found with a deed that cannot be solved by construction.

Key topics covered include:

  • - the way Div 6 and CGT operate in relation to a resident discretionary trust
  • - the special considerations that apply to testamentary trusts and others
  • - the concept of "the income" of a trust
  • - the "streaming" of capital gains and franked distributions
  • - issues for categories of beneficiaries, e.g. companies (including UPE issues), exempt entities 
    and minors
  • - the drafting of distribution resolutions.

Written by John Gaal of TaxCounsel, author of our popular titles the Division 7A HandbookCGT Small Business Reliefs and the Tax Agents Manual, and regular contributor to the Taxation in Australia journal.

The annual online subscription includes:

  • 12 months of unlimited access to the online version.
  • interactive eLearning and includes 2 structured CPD hours. You'll also find cross-references and links to relevant ATO materials.

Also available as an online book on the Tax Knowledge eXchange

Subscribe to the Tax Knowledge eXchange with our online books option and you'll receive full online access to Discretionary Trust Distributions, along with nine other leading guides and handbooks, and a host of additional content and up to 32 CPD hours.

Online subscription package (Includes 2 structured CPD hours)
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