The trust rules have undergone a degree of change and have seen a significant amount of scrutiny recently. The ATO has stressed the importance of making trustee resolutions by 30 June.
Trustees need to ensure they have completed the following steps by 30 June to ensure resolutions are effective:
- Check the deed for any specific timing requirement for the trustee resolution.
- Check the deed for the definition of income.
- Check the deed for specified beneficiaries and the permitted classes of beneficiaries.
- Ensure the trustee has TFNs for beneficiaries, unless the beneficiary is an excluded beneficiary such as a minor or non-resident;
- Determine the trust income based on the trust’s accounting records and supporting information.
- Ensure the trustee has documented the distribution decision by 30 June or at an earlier time specified by the trust deed.
By now our trust clients would have received draft resolutions to complete prior to 30 June which addresses the issues noted above.
Should you require some further assistance please feel free to contact us.
Scott is a Senior Accountant at Insight Accounting advice. He has a Bachelor of Commerce and is a registered tax agent. Scott’s experience covers all facets of accounting but he specialises in small businesses and SMSFs.
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The information in this document reflects our understanding of existing legislation, proposed legislation, rulings etc as at the date of issue. In some cases the information has been provided to us by third parties. While it is believed the information is accurate and reliable, this is not guaranteed in any way. Any advice in this publication is of a general nature only and has not been tailored to your personal circumstances. Please seek personal advice prior to acting on this information.