Tax Integrity - Improving the taxation of testamentary trusts

16 days left to have your say
Date
-
Consultation Type
Exposure Draft

Key Documents

In the 2018-19 Budget, the Government announced that it will implement an integrity measure to improve the taxation of testamentary trusts.

Currently, income received by minors from testamentary trusts is taxed at normal adult rates rather than the higher tax rates that generally apply to minors. However, some taxpayers are able to inappropriately obtain the benefit of this lower tax rate by injecting assets unrelated to the deceased estate into the testamentary trust.

The Government has prepared exposure draft legislation giving effect to this measure, which will clarify that minors will be taxed at adult marginal tax rates only in respect of income a testamentary trust generates from assets of the deceased estate, or the proceeds of the disposal or investment of these assets. This change will apply from 1 July 2019.

The Government is seeking stakeholders’ views on the exposure draft legislation and accompanying explanatory material implementing this measure.

Responding

You can submit responses to this consultation up until 30 October 2019. Interested parties are invited to comment on this consultation.

While submissions may be lodged electronically or by post, electronic lodgement is preferred. For accessibility reasons, please submit responses sent via email in a Word or RTF format. An additional PDF version may also be submitted.

All information (including name, address details, phone numbers and signatures) contained in submissions will be made available to the public on the Treasury website unless you indicate that you would like all or part of your submission to remain in confidence. Automatically generated confidentiality statements in emails do not suffice for this purpose. Respondents who would like part of their submission to remain in confidence should provide this information marked as such in a separate attachment.

Legal requirements, such as those imposed by the Freedom of Information Act 1982, may affect the confidentiality of your submission.

View our submission guidelines for further information.

How To Respond

Email

testamentarytrusts@treasury.gov.au

Post

Address written submissions to:

Manager
Small Business Entities and Industry Concessions Unit
Treasury
Langton Cres
Parkes ACT 2600

Enquiries

Email: testamentarytrusts@treasury.gov.au
Phone: Tina Smith +61 2 6263 2807