Tax Laws Amendment (2011 Measures No. 5) Act 2011 (62 of 2011)

Schedule 2   Interim changes to the taxation of trust income

Part 1   Main amendments

Income Tax Assessment Act 1936

4   Subsection 95(1)

Insert:

Division 6 percentage :

(a) a beneficiary of a trust estate has a Division 6 percentage of the income of the trust estate equal to the share (expressed as a percentage) of the income of the trust estate to which the beneficiary is presently entitled; and

(b) the trustee of a trust estate has a Division 6 percentage of the income of the trust estate equal to the share (expressed as a percentage) of the income of the trust estate to which no beneficiary is presently entitled.

However, if the income of a trust estate is nil:

(c) a beneficiary of a trust estate has a Division 6 percentage of the income of the trust estate of 0%; and

(d) the trustee of a trust estate has a Division 6 percentage of the income of the trust estate of 100%.