| Disclaimer You cannot rely on this record in your tax affairs. It is not binding and provides you with no protection (including from any underpaid tax, penalty or interest). In addition, this record is not an authority for the purposes of establishing a reasonably arguable position for you to apply to your own circumstances. For more information on the status of edited versions of private advice and reasons we publish them, see PS LA 2008/4. |
Edited version of private advice
Authorisation Number: 1052180724238
Date of advice: 17 October 2023
Ruling
Subject: Excepted trust income
Question
Will income derived from the investment of a superannuation death benefit that is paid to the minor's Trust, be considered excepted trust income for the purposes of section 102AG of the Income Tax Assessment Act 1936?
Answer
Yes. Income derived by the trustee from the investment of the superannuation death benefit is excepted trust income.
This ruling applies for the following periods:
1 July 20XX to 30 June 20XX
The scheme commenced on:
1 July 20XX
Relevant facts and circumstances
Individual A (you)is a minor and beneficiary of an estate proceeds trust (the Trust).
Your parent passed away intestate.
'Letters of Administration' were granted to the deceased's parent (the Administrator).
The Trust was established by Deed; the delay in setting up the Trust was mainly due to the Administrator's ill health.
The Administrator has settled money from your parent's estate into the Trust.
You will benefit from the income and capital of the Trust.
Your parent also had a superannuation account and you were a beneficiary.
The superannuation fund paid the superannuation death benefit to individual B as trustee for you.
Individual B did not want to act as trustee in respect of the superannuation death benefit.
The superannuation death benefit was paid into the solicitor's trust account.
The Administrator wishes to transfer the superannuation death benefit to the Trust in order to reduce the compliance burden of managing different trusts.
Relevant legislative provisions
Income Tax Assessment Act 1936, Section 102AC
Income Tax Assessment Act 1936, Section 102AG
Income Tax Assessment Act 1936, Subparagraph 102AG(2)(c)(v)
Income Tax Assessment Act 1936, Subparagraph 102AG(2)(d)(ii)
Income Tax Assessment Act 1936, Paragraph 102AE(2)(c)(ii)
Copyright notice
© Australian Taxation Office for the Commonwealth of Australia
You are free to copy, adapt, modify, transmit and distribute material on this website as you wish (but not in any way that suggests the ATO or the Commonwealth endorses you or any of your services or products).
