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This article addresses two topical issues in the taxation of trusts. In June 2011, an amending Act was passed which gave effect to “interim” changes to the taxation of trust income. The Act contained streaming measures providing a statutory ability to stream capital gains and franked distributions, and introduced two new anti-avoidance rules. Again, in December 2010, the government announced that there would be a review and public consultation on updating the trust provisions contained in Div 6 of Pt III of the Income Tax Assessment Act 1936. This was followed by a consultation paper.

This article first addresses the recent streaming changes and their impact. Also covered are some aspects of trust taxation that cause difficulties for practitioners where a rewrite of tax law may afford some relief. Second, the article reviews the present Div 6 rewrite proposal and explores the direction in which it might usefully be taken.

Author profiles:

Andrew Noolan CTA
Andrew is a Partner in the Sydney law firm Brown Wright Stein Lawyers. His clients are accountants and lawyers in public practice that require advice on tax issues impacting on their clients. Andrew specialises in tax issues common to the SME and high-wealth individual sectors. Current at 09 February 2016 Click here to expand/collapse more articles by Andrew NOOLAN.
Author Photo - Kenneth Schurgott CTA-Life
Kenneth Schurgott CTA-Life
Ken is a Tax and Commercial Law Director of Schurgott & Co Lawyers and Special Counsel with Brown Wright Stein Lawyers, Sydney. He has extensive experience in all aspects of tax (including state taxes and litigation), as well as business structuring, business sales and acquisitions, asset protection, succession planning and trust and estate law. Ken has been, until recently, a member of the Advisory Panel to the Board of Taxation and heavily engaged in ongoing consultation in relation to the reform of the taxation of trusts and trust issues generally. Current at 28 July 2016 Click here to expand/collapse more articles by Ken SCHURGOTT.
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