We need to alert you that 2 key changes will affect people using Family Trust in this 2023 financial year.
| Key Change | How This Will Affect You |
| S100A + Distributions to Family MembersThe ATO has released draft Tax Rulings based on S100A of the Tax Act that restrict Trusts making distributions to adult children or family members unless the cash amount of the distribution is paid to the beneficiary. | More Tax to Pay in 2023You may be restricted in the amounts your Family Trust can allocate to adult children or parents when compared with prior years. Our Tax Planning meeting with you in May/June 2023 will be crucial to get this right and not expose you to any penalties from the ATO. |
| “Owies” Case + Consideration of Beneficiaries In this recent Court case, the Trustee was removed, and an independent Trustee was appointed when 2 beneficiaries complained they weren’t considered. | More Work to Administer your Trusts in 2023 Prior to 30 June, accountants will have to assist all Trustees with the following: 1. Reconsider the default beneficiaries in a Trust. 2. Consider the purpose recited in a Trust. 3. Consider the terms of a Trustee exercising their discretion. This process will take time and will need to start taking place from the beginning of May 2023. |