The Federal Government has announced that it will undertake a review and rewrite of the complex area of trust tax law.
The two (2) areas flagged by the Government for “immediate” implementation include:
- changes to enable the streaming of capital gains and franked distributions (this basically allows the right beneficiaries to receive the right type of income from a trust distribution); and
- changes to allow beneficiaries to continue to use the primary production averaging and Farm Management Deposit provisions in a loss year.
Watch this space for further developments.