Taxation Administration Act 1953
SCHEDULE 1 - COLLECTION AND RECOVERY OF INCOME TAX AND OTHER LIABILITIES
View history note
Hide history noteNote: See section 3AA .
Chapter 2 - Collection, recovery and administration of income tax
PART 2-10 - PAY AS YOU GO (PAYG) INSTALMENTS
Division 45 - Instalment payments
Subdivision 45-I - Trust income included in instalment income of beneficiary
SECTION 45-280 INSTALMENT INCOME FOR A PERIOD IN WHICH YOU ARE A BENEFICIARY OF A TRUST
45-280(1)
Your
instalment income
for a period (the
current period
) includes an amount for each trust of which you are a beneficiary at any time during the current period. The amount is worked out using the formula:
| Your assessable income from
the trust for the last income year Trust ' s *instalment income for that income year |
× |
Trust
'
s
*instalment income for the current period |
45-280(2)
For the purposes of the formula in subsection (1):
your assessable income from the trust for the last income year
means so much of a share of the trust
'
s net income for an income year as:
(a)
Division
6
of Part
III
of the
Income Tax Assessment Act 1936
included in your assessable income for the most recent income year:
(i) that ended before the start of the current period; and
(ii) for which you have an assessment, or for which the Commissioner has notified you that you do not have a taxable income; and
(b)
is
not
attributable to a *capital gain made by the trust.
Note:
For exceptions to paragraph (b), see section 45-290 .
45-280(3)
However, if for any reason the component defined in subsection (2) does not exist or is a nil amount, or the trust had no *instalment income for that income year, your
instalment income
for the current period includes, for that trust, an amount that is fair and reasonable having regard to:
(a)
the extent of your interest in the trust, and your interest in the income of the trust, during the current period; and
(b)
the trust
'
s *instalment income for the current period; and
(c)
any other relevant circumstances.
Exception for corporate unit trusts and public trading trusts
45-280(4)
Your instalment income for the current period does not include an amount for a trust if the trustee is liable to be assessed, and to pay tax, under section 102S of the Income Tax Assessment Act 1936 for the income year that is or includes that period.
Note:
Your instalment income will still include a distribution by the trust that is ordinary income. See section 45-120 .
Exception for certain resident unit trusts
45-280(5)
Your instalment income for the current period does not include an amount for a trust under subsection (1) if the conditions in either subsection 45-285(1) or (2) are satisfied for you for that trust for that period.
Note:
Your instalment income will instead include a distribution by the trust: see section 45-285 .
Exception for trusts whose beneficiary is absolutely entitled
45-280(6)
Your instalment income for the current period does not include an amount for a trust under subsection (1) if, throughout the current period:
(a)
the trustee of the trust did not have any active duties to perform in the management of the trust (other than the duty to deal with the trust income and capital in accordance with any requests made or directions given by the beneficiary or beneficiaries); and
(b)
if there was only one beneficiary, the beneficiary:
(i) was absolutely entitled to the trust assets; and
(ii) had a vested and indefeasible interest in any trust income arising from time to time; and
(c)
if there was more than one beneficiary, each beneficiary:
(i) was absolutely entitled to that beneficiary ' s interest in the trust assets; and
(ii) had a vested and indefeasible interest in a proportion of any trust income arising from time to time, being a proportion that corresponded to the beneficiary ' s proportional interest in the trust capital.
Instead, your instalment income for the current period includes the following amount:
| Your proportion of the vested
and indefeasible interests in the trust income arising from time to time |
× | Trust
'
s *instalment income
for the current period |
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