Published on 01 Aug 11
by "TAXATION IN AUSTRALIA" JOURNAL ARTICLE
Significant new trust streaming measures were introduced by the Tax Laws Amendment (2011
Measures No. 5) Act 2011, and have effect from 1 July 2010. Trust distributions to be made by 30 June 2011 must take these new rules into account if the trust has derived taxable capital gains or franked distributions. Taxable capital gains and franked distributions for 2011 and beyond are dealt with exclusively under the new streaming provisions.
These provisions were introduced as an interim measure to deal with perceived anomalies in the taxation of capital gains and franked distributions pending a comprehensive review of Div 6 of the Income Tax Assessment Act 1936. They were introduced in haste in view of the pending year end, and it is clear that they will lead to considerable uncertainty among advisers. In this article, the author examines the new measures in detail, and discusses a number of issues which arise.
Ken Schurgott, CTA-Life is a Solicitor - Director of Schurgott & Co Lawyers specialising in taxation matters (including State Taxes, stamp duty, payroll tax and land tax) and with extensive experience in business structuring, business sales and acquisitions, asset protection, succession planning and trust and estate law. Ken is very experienced in tax dispute matters, negotiations for settlements, mediations and conciliations and litigation. He regularly appears before the AAT and NCAT and instructs counsel in matters before the Courts. Ken has been heavily involved in consultations with the ATO and Treasury on matters involving trusts including the inter-relation with Division 7A. He was National President of The Tax Institute in 2012.
- Current at
17 October 2017