Tax issues for trusts — essential reading for all trustees
A recent ATO publication highlights the importance of planning for year-end trust distributions. If, for instance, the trustee makes a resolution after 30 June, no beneficiary was presently entitled to trust’s income by 30 June and there was no default clause in the trust deed, then the trustee will be assessed on the trust’s taxable income at the highest marginal tax rate, plus the Medicare Levy.
