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 is a tax and commercial law partner in the Sydney office of SBN Lawyers. He has extensive experience in all aspects of tax (including State taxes) as well as business structuring, asset protection, succession planning and trust and estate law. Ken is a National Councillor of the Tax Institute and a member of the NSW Divisional Council and Education Committee. He is also a member of the Advisory Panel to the Board of Taxation and has recently been involved as a member of the Working Group on Managed Investment Trusts.
Current at 13 January 2009
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