409 | Assessment of the Trustee

When we talk about trust distributions, we always mention the possible assessment of the trustee. Especially when a trust distribution goes wrong, But what does that actually look like?

403 | Div 6E Income

Div 6E income is relevant when your trust income includes capital gains and/or franked distributions. Then Div 6E will avoid double taxation.

402 | Trust Loss Allocation

Trust Loss Allocation - Upton v Brown sets the scene. And then Cajkusic and Raftland confirm Upton v. Brown but very much limit its application.

s100A pain points

Update 35 | s100A Pain Points

There are many s100A pain points - let's cover five in this update.

401 | Trust Loss Questions

Let's go to the very start and look at trust income. Because we need to understand trust income before we can talk about trust losses.

399 | Foreign Trusts

Foreign trusts are not an issue per se. Nor are resident trusts. It really depends. But if you do have a foreign trust, watch out for s99B ITAA 1936. That is a really dangerous one.

asset protection trust

398 | Asset Protection Trust

An asset protection trust (aka equity split) does not give you 100% protection but it helps. Each layer you use increases your protection from creditors.

99 | Trust Resettlement

Trust resettlement scares many, but is actually quite rare to occur. A trust resettlement is a CGT event and hence triggers capital gain tax.

Update 33 | Updated s100A TR and PCG

Updated s100A TR and PCG - get the updated review of ATO's approach to s100 issues. Avoid reimbursement arrangements.

389 | TR 98/4 Situations 4 and 5

TR 98/4 situations 4 and 5  are about non-arm's length income and arrangements.

388 | TR 98/4 Child Maintenance Trust Arrangements

TR 98/4 is about child maintenance trust arrangements. It lists five scenarios where the CMT does not qualify for excepted income.

387 B | Child Maintenance Trust Income

Child maintenance trust income - this is the second part of our interview about the excepted income in child maintenance trusts.

387 A | CMT Excepted Income

CMT excepted income is what a child maintenance trust is all about. If you don't have excepted income, then there is little point in having a CMT.

362 | Disclaimer of Trust Income

A disclaimer of trust income used to be easy - not anymore as Andrew Henshaw of Velocity Legal in Melbourne will tell you.

the carter case

361 | The Carter Case

The Carter Case changed everything. You can no longer disclaim a trust distribution for income tax purposes.

347 | s100A Q & A

In this s100A Q & A session in our mini-series about s100A ITAA36 we go through all the outstanding questions you still had.


346 | Blue Zone Arrangements

Blue zone arrangements can be saved. With a few tweeks you can usually move back into the green zone.

345 | The Guardian Case

The Guardian case will give you a better defence when accused of a so-called 'washing machine arrangement'.

340 | s100A ITAA36

s100A ITAA36 is about reimbursement arrangements. I pay you something and then you pay me straight back - that sort of arrangement. 

324 | Default Beneficiary

A default beneficiary might save your trustee from paying top marginal tax rates on trust income and capital gains - without a 50% CGT discount.

323 | Missing Trust Distributions

Missing trust distributions can cost you a lot of money unless you have a default beneficiary.

child maintenance trust questions

314 | Child Maintenance Trust Questions

In this episode Patrick Huang will go through 10 child maintenance trust questions you sent in.

309 | Child Maintenance Trust

A child maintenance trust can save you a lot of tax but it comes at a huge cost as Simon Bacon of Manby & Scott will tell you.

Losses need an FTE

279 | Losses Need an FTE

Is it always true that losses need an FTE? Let's talk about when an FTE makes sense and when it doesn't.

Testamentary Trust Questions

278 | Testamentary Trust Questions

In this episode Paul Mackenroth of Cleary Hoare in Brisbane goes through ten of your testamentary trust questions.

Testamentary Trust Law Change

UPDATE 25 | Testamentary Trust Law Change

There has been a significant testamentary trust law change affecting how distributions to minors are taxed.

273 | Trust Reporting

If you look at the work done in your practice, chances are trusts - especially discretionary trusts - take up a disproportionate amount of time.

264 | Common Trust Deed Issues

In this episode Emily Pritchard of ACIS  walks you through 9 common issues around trust deeds. 

252 | Special Disability Trusts

What is a special disability trust? What can or can’t it do? And why would you set one up? Here is John Saunders with some answers.

156 | Trust 101 – Part II

Here is Part II of Paul Goldin's overview of simple mistakes that are easy to avoid but even easier to make - Trust 101 Part II.

Trusts 101

155 | Trust 101 – Part I

In this episode Paul Goldin of Vectigal will give you a quick overview of simple mistakes around trusts - easy to make - easy to avoid - Trust 101.

Power of Attorney and Enduring Guardianship

134 | Testamentary Trust Basics

In this episode Peter Bobbin of Argyle Lawyers will tell you when a testamentary trust makes sense - and when it doesn't.

transferor trusts

52 | Transferor Trusts

If Australia didn’t have rules around transferor trusts, you could ‘park’ assets and income in overseas trusts.

51 | Trusts as Companies

Corporate unit trusts and public trading trusts are trusts in a legal sense but treated as companies for tax purposes.
taxation of deceased estates

50 | Taxation of Deceased Estates

The taxation of deceased estates can be easy and it can be tricky.  It depends on what goes in, what happens while it is in there and how it leaves.
Life and Remainder Interest

115 | Life and Remainder Interest

A life and remainder interest is often used in a testamentary setting. Here is Michael McCarthy of Tax & Super Australia with more.

Deceased Estate

114 | Deceased Estate

A deceased estate entails a myriad of legal and tax questions. Here is Michael McCarthy of Tax & Super Australia with the answers.

trust income streaming

97 | Trust Income Streaming

Trust income streaming is an important feature of non-fixed trusts. Here is Paul Mackenroth of Cleary Hoare with the details.

Taxation of Trusts

96 | Taxation of Trusts Div 6 ITAA36

The taxation of trusts lives in the 'old' ITAA36. Paul Mackenroth of Cleary Hoare in Brisbane will walk you through the framework of Division 6. 

Family Trust Elections

95 | Family Trust Elections

Family trust elections play an important role but are not a one-size-fits-all solution. Paul Mackenroth of Cleary Hoare in Brisbane will tell you more.

Revocable trusts

94 | Revocable Trusts

Section 102 of ITAA36 about revocable trusts is an anti-avoidance provision.  Paul Mackenroth of Cleary Hoare in Brisbane will tell you more.

control test

46 | Control Test

A non-fixed trust can only deduct tax losses and debt deductions if there is continuity of control of the trust. So here comes the control test.
50% Stake Test

45 | 50% Stake Test

The 50% stake test is all about who has been holding more than a 50% stake in the trust and whether that has changed from the loss to the income year.

44 | Pattern of Distributions Test

The pattern of distributions test only applies to non-fixed trusts without a family trust election.
Trust Structure

91 | Trust Structure

Choosing the right trust structure is an important step to effectively manage and administer wealth. Here is Paul Mackenroth of Cleary Hoare with more.

Income Injection Test

43 | Income Injection Test

The income injection test applies to all fixed and non-fixed trusts including family trusts. The only exception are excepted trusts that are not family trusts.
Set Up a Discretionary Trust

90 | Set Up a Discretionary Trust

How do you set up a discretionary trust? Paul Mackenroth of Cleary Hoare in Brisbane will walk you through the process.

Duties of Trustees

89 | Duties of Trustees

The relationship between trustee and beneficiary is defined by rights and duties. Paul Mackenroth of Cleary Hoare in Brisbane will tell you more.

unit trusts fixed

42 | Are Unit Trusts Fixed

A unit trust is a very common feature in Australia. Most widely held trusts are unit trusts. But when are unit trusts fixed trusts and when not?
Trust Losses

41 | Trust Losses

Trust losses are not subject to the Division 35 non-commercial loss rules.  Instead the trust loss provisions in Schedule 2F ITAA36 apply.
reimbursement agreement

40 | Reimbursement Agreement

A reimbursement agreement is an arrangement, where the trustee channels trust distributions via beneficiaries to a third party. 
Revocable trust

39 | Revocable Trust

A revocable trust is a pretend game.  So the Commissioner can put an end to the charade and tax the trustee instead.
CGT Event E4

38 | CGT Event E4

A CGT event E4 can only happen in relation to a fixed or hybrid trust interest. The non-assessable part results in a cost base adjustment per s104-70 ITAA97.
how to stream trust income

35 | Streaming Trust Income Example

How to stream trust income sounds confusing enough in theory but gets even more confusing when you drown in numbers. But here is a simple example.
streaming of trust income

34 | Streaming Trust Income

Streaming of trust income is a good way to tax-effectively channel income to the right beneficiaries.
Who Pays the Income Tax for a Trust

33 | Who Pays the Income Tax for a Trust

Beneficiaries and/or trustee pay the income tax for a trust. But who pays how much?
Unpaid Present Entitlement

32 | Unpaid Present Entitlement

The issue of unpaid present entitlements comes up pretty much every time you deal with a trust.
Taxation of Minors Div 6AA

31 | Taxation of Minors Div 6AA

The taxation of minors in Division 6AA is an anti-avoidance provision. Anybody channeling certain income to minors is hit with punitive tax rates.
Division 6 ITAA36

30 | Division 6 ITAA36

Division 6 ITAA36 is the foundation for the taxation of trusts. Everything else wraps around Division 6.

29 | What is a Trust

There are more than 800,000 trusts in Australia with assets totalling more than $3 trillion. But what is trust?
Definition of Trust Income

23 | Definition of Trust Income

The definition of trust income in your deed determines who gets what income and as important who pays tax on what income. So you need to get this right.
elements of a trust

80 | Elements of a Trust

There are over 800,000 trusts. Paul Mackenroth of Cleary Hoare in Brisbane will walk you through the elements of a trust.