The end of the financial year is fast approaching – if you operate a business or investments though a trust you will need to have your trust account distribution minutes determined by 30 June. Backed by this year’s federal budget, the Australian Tax Office (ATO) will crackdown on all trust structures and their uses – it is very important that your trusts and distributions are compliant.
What are Distribution Minutes?
Before the end of each financial year you have to decide who gets what income from your trust. If you don’t then there is a risk that you will have a higher tax obligation. If you have a discretionary Family Trust (a trust set up by a deed of settlement for the benefit of beneficiaries all or most of whom are members of the one family) or Testamentary Trust (a trust set up by will), you must have your minutes drafted by June 30.
When planning your trust distributions, keep in mind:
· All beneficiaries need to provide tax file numbers
· Distributions to charities need to be paid or notified
· Streaming of capital gains and imputation credits is possible
· Distributions to minors are restricted to $416
More power to the ATO
The ATO is able to request copies of your trust distribution minutes for review by the first week of July. It is therefore imperative that you have your distribution minutes completed by 30 June.
If you have not yet drafted your trust distribution minutes yet, contact The Quinn Group as soon as possible to ensure that your trust and its distributions are compliant.
Here at The Quinn Group, our dedicated team of Lawyers can assist you with all your trust and trust related queries. Submit an online enquiry or call us on 1300 QUINNS (1300 784 667) or +61 2 9223 9166 for more information or to arrange an appointment.
