Income Tax Assessment Act 1936

SCHEDULE 2F - TRUST LOSSES AND OTHER DEDUCTIONS  

Division 269 - Concepts and tests applied in Divisions 266 and 267  

Subdivision 269-D - Pattern of distributions test  

SECTION 269-80   WHERE INDIVIDUAL ' S DEATH OR BREAKDOWN OF MARRIAGE OR RELATIONSHIP  

269-80(1)    
For the purposes of section 269-60 , if:

(a) the trust distributes, directly or indirectly to an individual as mentioned in that section, income or capital that is included in a test year distribution; and

(b) a later distribution of income or capital is made that is included in the same or a different test year distribution; and

(c) either the individual dies before the later distribution is made or:

(i) before it is made, there is a breakdown in the marriage or relationship (see section 272-140) of the individual; and

(ii) after the breakdown, no distribution of income or capital of the trust, that is included in a test year distribution, is made directly or indirectly to the individual; and

(iii) it is reasonable to assume that the breakdown in the marriage or relationship is the reason for no such distribution being made;

then subsections (2) and (3) apply.

269-80(2)    
No income or capital distributed to the individual by the trust, directly or indirectly as mentioned in section 269-60 , is to be included in any test year distribution.

269-80(3)    
If:

(a) the requirements of subsection (1) are met because the individual has died; and

(b) immediately before his or her death, the individual had directly or indirectly, and for his or her own benefit, a fixed entitlement to a share of the income or capital of the trust; and

(c) after the individual ' s death, the fixed entitlement is held by a person as trustee of the individual ' s estate or by a person who received it as a beneficiary of the estate;

no income or capital distributed to the person as such a trustee or beneficiary, directly or indirectly as mentioned in section 269-60 , is to be included in any test year distribution.