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Australian resident beneficiaries of a non-resident trust estate under a legal disability

Last updated 3 February 2010

Before the FIF measures began, the assessable income of a trustee included the share of the net income of a trust estate which related to a period when:

  • a beneficiary under a legal disability was a resident of Australia, or
  • a beneficiary who is deemed to be presently entitled to a share of the net income of the trust estate (because they had a vested and indefeasible interest in the income of the trust estate) was a resident of Australia. [subsections 95A(2), 98(1) and (2)]

Since the FIF measures began, a trustee is not assessed on behalf of a beneficiary of a non-resident trust estate where the beneficiary is under a legal disability because the beneficiary is deemed not to be under a legal disability.

However, the beneficiary is assessed under section 97 of the ITAA 1936 - the general assessing provision for trusts. The beneficiary's own share of the net income of the non-resident trust estate is now worked out under the provisions of section 96C of the ITAA 1936 - see Attribution of non-resident trust income where the FIF measures do not apply above on section 96C and the FIF measures. [subsections 96B(2), 98(1) and (2)]

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