Trusts 2012

Trust streaming post-Bamford

Source: Taxation In Australia Journal Article

Published Date: 1 Feb 2012


The High Court decision in the Bamford case in 2010 raised uncertainty about the operation of the provisions in tax legislation which confer "flow-through" status on capital gains and franked dividend amounts appointed to specific beneficiaries of trusts. The government's response was to enact amending legislation designed to ensure that, for the 2010-11 and later income years, where a trustee has the power to appoint or stream capital gains and/or franked distributions (including any attached franking credits) to specific beneficiaries, this will be effective for tax purposes.

This article examines in detail how the new provisions work and provides examples. It is pointed out that the calculations necessary to work out who is assessable on what part of a capital gain or a franked distribution that has been streamed to a particular beneficiary are highly complex, and the timing
rules will put significant pressure on trustees and their advisers.

Sorry, this is subscriber only content.

To gain access to this material and much more - Subscribe Now.

(Note: Members can access Taxation in Australia journal articles without a Tax Knowledge Exchange subscription - please log in to access).

Already a Subscriber? Login now


The material is copyright. Apart any fair dealing for the purpose of private study, research criticism or review, as permitted under the copyright Act, no part may be reproduced by any process without written permission from The Tax Institute.

Unless expressly stated, opinions are not that of The Tax Institute, which accepts no responsibility for the accuracy of any of the information contained within it.

The Tax Institute
(ABN 45 008 392 372 (PRV14016))


The Tax Institute is a Recognised Tax Agent Association (RTAA) under the Tax Agent Services Regulations 2009. 

Copyright Statement

All materials provided on this site are protected by copyright and are owned by or licensed to TTI.

Except as expressly permitted by TTI or the copyright owner, any person or company who uses this site must not use, reproduce, redistribute, retransmit, publish or otherwise transfer, or commercially exploit, the materials or any information, software or other content, in whole or in part, which is available through this site.


Trusts 2012

Share this page