Do you have a unit trust with 2 dt unitholders ? You might have to pay 47% tax

Trick for people who have a unit trust with two discretionary trust unitholders. Did you complete your TB schedule ? If not trustee can be assessed at 47%. And even if those discretionary trusts did family trust elections the unit trust isnt an excluded trust

 

TB = Trust beneficiary schedule. The trustee must notify the ATO who receives the income of the trust.

Does your tax agent include this?

 

And the tb schedule isnt the trust statement of distribution schedule

 

Trustee beneficiary reporting rules

 

Yep, The TB schedule is important and especially with the example of DT beneficiaries.

I recently found a interesting thing about trust distributions. If a minor receives $416 from one trust and the accountant thinks they are clever by suggesting the other trust distribute $416... Its a problem.

A minor can only have one $416 distribution in a year.

 

I had a client recently who wanted to cause a trust he controlled to distribute $416 to children of his brother - without confirming what their income was. I said what if they were already beneficiaries of other trusts already receiving distributions. The trustee should check with the beneficiary of the trust before distribution otherwise tax complications can arise. A beneficiary may also not accept a distribution.