Key Documents
On 16 December 2010, the Assistant Treasurer announced that the Government would conduct a public consultation process as the first step towards updating the trust income tax provisions in Division 6 of Part III of the Income Tax Assessment Act 1936 and rewriting them into the Income Tax Assessment Act 1997.
On 21 November 2011, the Assistant Treasurer released a consultation paper that explores the current issues impeding the effective operation of Division 6 as well as those hampering the effective taxation of trusts more broadly. The paper also outlines a number of options for reform, ranging from minor changes to the current operation of Division 6 to the introduction of a new model for the taxation of trust income.
This consultation paper has been developed drawing on the expertise of the private sector particularly through the established Tax Design Advisory Panel process and the Board of Taxation.