Posts

Power of Attorney and Enduring Guardianship

134 | Testamentary Trust Basics

Whether a testamentary trust is a good idea or a waste of your time depends on the size of your estate, your intentions and your beneficiaries.

133 | ITAA97 NANE

On the 1 July 2018 a new approach to the non-arm’s length concept came to life. Non-arm’s length expenses (NANE).

126 | Tax Talks Q & A

This  Tax Talks Q & A goes through 10 questions and comments you sent in up to April 2019.

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.

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.

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.

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.

Articles

Div 7A UPE

70 | Div 7A UPE

The scenario of a Div 7A UPE can result in a huge tax bill.  UPE stands for unpaid present entitlement.
Small Business Participation Percentage

60 | Small Business Participation Percentage

The small business participation percentage plays a crucial role when you sell shares or units and want to qualify for the small business CGT concessions.
Affiliates and Connected Entities

58 | Affiliates and Connected Entities

The concept of affiliates and connected entities plays a crucial role around the small business CGT concessions.
transferor trusts

53 | Transferor Trusts

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

52 | 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

51 | 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.
control test

47 | 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

46 | 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.

45 | Pattern of Distributions Test

The pattern of distributions test only applies to non-fixed trusts without a family trust election.
Income Injection Test

44 | 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.
unit trusts fixed

43 | 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

42 | 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

41 | Reimbursement Agreement

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

40 | 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

39 | 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

36 | 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

35 | 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

34 | 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

33 | 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

32 | 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

31 | Division 6 ITAA36

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

30 | 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

24 | 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.